| A | B |
|---|
| supply | the amount of a good or service that consumers are willing and able to buy at various prices during of a given period. |
| quantity supplied | the amount of a good or service that consumers are willing able to purchase at a particular price |
| law of supply | the principle that all other factors being equal, consumers will purchase more of a good at lower prices and less of a good at higher prices. |
| profit | the difference between the revenue received from the sale of a good and service and the costs of providing that good or service. |
| costs of production | a business that makes profit when revenues are greater |
| supply schedule | a table lists each quantity of a product that producers are willing to supply at various prices. |
| supply curve | a graphic representation of a supply schedule, showing the relationship between the price of an item and the supply schedule with all other things being equal. |
| elasticity of supply | the degree to which changes in the price of a good or service affect quantity. |
| elastic supply | the situation that exists when quantity demanded changes greatly in response to a change in price. |
| inelastic supply | the situation that exists when quantity demanded changes only slightly or not at all in response to a change in price. |
| determinant of supply | a nonprime factor that influences the amount of demand for a good or service. |
| tax | a required payment to a local, state, or national government, usually made on some regular basis |
| subsidy | a payment made by a government to individuals, businesses, or an industry to encourage certain activities that are cosidered essential or desirable. |
| regulation | a rule that a government establishes and enforces to protect the public or provide equal access to specific goods and services. |
| total product | all of the goods and services produced by a business during a given period of time with a given amount of input. |
| marginal product | the addtional output obtained by employing one more unit of input. |
| law of diminishing returns | the principle that all other factors being equal, consumers will purchase more of a good at lower prices and less of a good at higher prices. |
| fixed cost | a cost of doing business that remains constant as production increases or decreases. |
| depreciation | a decline in the value of one's nation currency relative to that of another nation. |
| overhead | the sum of a business's fixed costs except for wages and the material costs. |
| variable cost | a cost of doing business that changes directly with a change in the level output, typically rising and dropping as production increases and decreases. |
| total cost | the sum of the fixed and variable costs involved in the production of a good or service |
| marginal cost | the cost of producing one additional unit of output. |
