| A | B |
|---|
| Marginal cost | Usually rises as the rate of production increases |
| Supply | The various amounts of something a producer is willing and able to sell at different possible prices |
| Elastic supply | Exists when the price effect is substantial |
| Market supply | The sum of all producers' supplies in a given market |
| Decrease in supply | People want to sell less of a product at all possible prices |
| Price effect | Producers want to sell more at higher prices than at lower prices |
| Expectations of higher future prices for a product | Can cause today's supply line to shift to the left |
| More efficient equipment | Causes the supply curve to shift to the right |
| Opportunity cost | Business people bear this when producing things we want |
| Inelastic supply | Exists when the price effect is small |
