| A | B |
|---|
| SUPPLY | THE COMBINATION OF GOODS AND SERVICES THAT PRODUCERS ARE WILLING AND ABLE TO SUPPLY AT VARIOUS PRICE LEVELS |
| LAW OF SUPPLY | THE TENDENCY OF PRODUCERS TO PRODUCE MORE GOODS AND SERVICES AT A HIGHER PRICE AND LESS GOODS AND SERVICES AT A LOWER PRICE |
| ELASTICITY OF SUPPLY | A MEASURE OF HOW SUPPLIERS RESPOND TO A CHANGE IN PRICE |
| GOODS | HAVE RELATIVELY INELASTIC SUPPLY IN THE SHORT RUN |
| SERVICES | HAVE ELASTIC SUPPLY IN BOTH THE SHORT AND LONG RUN |
| INCREASE IN SUPPLY | MOVEMENT OF THE ENTIRE SUPPLY CURVE TO THE RIGHT |
| DECREASE IN SUPPLY | MOVEMENT OF THE ENTIRE SUPPLY CURVE TO THE LEFT |
| VARIABLE COSTS | COSTS THAT CHANGE AS PRODUCTION LEVELS CHANGE |
| FIXED COSTS | COSTS THAT DO NOT CHANGE WITH PRODUCTION CHANGES |
| TOTAL COSTS | ALL FIXED PLUS ALL VARIABLE COSTS |
| GROSS PROFIT | REVENUE MINUS COSTS |
| NET PROFIT/INCOME | GROSS PROFIT MINUS TAXES |
| SUBSIDY | A GOVERNMENT PAYMENT TO SUPPORT A PRODUCER OR INDUSTRY |
| EXCISE TAX | A TAX IMPOSED TO REDUCE THE PRODUCTION OF A PARTICULAR GOOD OR SERVICE |
| SIN TAX | A TAX ON AN ITEM THAT IS CONSIDERED DETRIMENTAL TO SOCIETY |
| TARIFFS | A TAX ON AN IMPORTED GOOD |
| EQUILIBRIUM | THE COMBINATION OF PRICE AND QUANTITY AT WHICH THE INTENTIONS OF CONSUMERS AND PRODUCERS ARE EQUAL |
| SURPLUS | A MARKET CONDITION WHERE SUPPLY EXCEEDS DEMAND |
| SHORTAGE | A MARKET CONDITION WHERE DEMAND EXCEEDS SUPPLY |
