| A | B |
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| State the Law of Supply | The Law of Supply is the principal that suppliers will normally offer more for sale at high prices and less at lower prices. |
| What causes quantity supplied to change? | A change in the amount offered for sale in response to a change in price |
| List the factors that cause the supply curve to shift. | RATNEST: R=RESOURCE COST, A=ALTERNATIVE OUTPUT, T=TECHNOLOGY, N=NUMBER OF SELLERS, E=EXPECTATION, S=SUBSIDIES, T=TAXES OR ACTIONS OF THE GOVERNMENT |
| How do you calculate profit? | Profit=(Amount) +Recieved from the sale-(Total Cost) |
| Whar are variable costs... also give an example. | Variable costs are cost that change when the business rater of operation or output changes. An example would be electric power to run machines. |
| What are fixed cost...Also give an example. | Fixed cost are the cost that a business incurs even if the plant is idle and output is zero. An example would be a salary, rent payments, or property taxes. |
| Explaing the difference between the Law of Supply and the Law of Demand. | Law of Supply is the principle that suppliers will normally offer more for sale at high prices and less at lower prices. Law of Demand is the rule stating that more will be demanded at lower prices and less at higher prices, inverse relationship between price and quantity demanded. |
| List and describe the determinants of demand. | TIMER, T=TASTE;POPULARITY, I=INCOME FOR NORMAL GOODS, M=MARKET SIZE, NUMBER OF BUYERS, E=EXPECTATION FOR PRICE, R=RELATED GOODS; COMPLEMENTS AND SUBSTITUTES |
| When does the market reach equilibrium? | When things are balanced or equal |
| What is a surplus? | A surplus is a situation in which the quantity supplied is greater than the quantity supplied at a given price. |
