| A | B |
|---|
| Elasticity | The measure of the impact of price on supply |
| Upward | Supply curves slope_____ from left to right |
| Supply | Producers want to sell more at higher prices than lower prices. |
| Marginal cost | Usually rises as the rate of production increases. |
| Price | What consumers pay |
| Change in supply | What happens when new businesses enter a market |
| Opportunity Cost | The best alternative given up when making a choice |
| Demand | The various amounts you're ready to buy at different prices |
| Expectations | What you believe will happen |
| Market supply | The sum of all producers' supplies in a given market. |
| Money | Reduces the cost of exchange (medium of exchange) |
| Elastic | When a price change causes the demand to be large |
| Inelastic | When a price change causes no change in the demand |
| Elastic supply | Exists when the price effect is substantial. |
| Decrease in supply | People want to sell less of a product at all possible prices. |
| Price effect | Producers want to see more at higher prices than at lower prices. |
| Expectations of higher future prices for a product. | Can cause today's supply curve t oshift to the left. |
| More efficient equipment. | Causes supply curve to shift to the right. |
| Inelastic supply | Exists when the price effect is small. |
| Complementary goods | Goods often used together. |
| Full employment | There should be a job for everyone ready, willing, and able to work. |
| Economics growth | The average living standard should improve as the output of goods and services is increased. |
| Pillars of a free economy. | Private property, price system, competition and entrepreneurship. |
| Incentive | Same as motivation; can be $$$$. |
| Profit | Money remaining after deducting total costs from total revenue. |
| Consumers | Members of households |
