| A | B |
|---|
| COST OF PRODUCTION- | COST OF THINGS SUCH AS NATURAL RESOURCES, CAPITAL, AND LABOR, WHICH MUST BE PAID BY PRODUCERS |
| EXECUTIVES- | PEOPLE RESPONSIBLE FOR DIRECTING AND MANAGING A BUSINESS |
| INCENTIVES- | THINGS THAT ENCOURAGE PEOPLE TO WORK HARDER OR TO PRODUCE MORE |
| LAW OF SUPPLY- | THE ECONOMIC LAW WHICH SATES THAT PRODUCERS ARE WILLING TO SUPPLY MORE OF A GOOD OR SERVICE AS THE PRICE BECOMES HIGHER |
| SUPPLY- | THE AMOUNT OF A GOOD OR SERVICE THAT PRODUCERS ARE WILLING AND ABLE TO PRODUCE AT DIFFERENT PRICES |
| SUPPLY CURVE- | THE LINE ON A GRAPH THAT REPRESENTS THE AMOUNT OF A GOOD OR SERVICE THAT PRODUCERS ARE WILLING TO SUPPLY AT DIFFERENT PRICES |
| EQUILIBRUM PRICE- | THE PRICE AT WHICH THE AMOUNT DEMANDED EQUALS THE AMOUNT SUPPLIED |
| INTERSECT- | TO CROSS AT A POINT. THE POINT ON A GRAPH WHERE A SUPPLY CURVE AND DEMAND CURVE INTERSECT MARKS THE EQUILIBRIUM PRICE. |
| INVENTORY- | PRODUCTS THAT A BUSINESS HAS IN STOCK AND THAT ARE READY TO BE SOLD |
| SHORTAGE- | WHAT HAPPENS WHEN, AT A GIVEN PRICE, PEOPLE WANT TO BUY MORE OF A GOOD OR SERVICE THAN IS AVAILABLE |
| SURPLUS- | WHAT HAPPENS WHEN, AT A GIVEN PRICE, MORE OF A GOOD OR SERVICE IS AVAILABLE THAT PEOPLE WANT TO BUY |
