| A | B |
|---|
| supply | The quantity of goods and services that producers are willing and able to ofer at various possible prices during a given time |
| quantity supplied | Amount of a good or service that a producer is willing to sell at each particular price. |
| law of supply | Producers supply more goods/services when they can sell them at higher prices and fewer goods/services at lower prices. |
| profit motive | The desire to make money. |
| profit | The amount of money remaining after producers have paid all of their costs. |
| cost of production | Costs include: wages,salaries,rent, interest on loans, bills, raw materials and any other goods/services used to make a product. |
| supply schedule | Lists each quantity of a product that producers are willing to supply at various market prices. |
| supply curve | Plots on a graph the information from a supply schedule. |
| elasticity of supply | The degree to which the price changes affect the quantity supplied. |
| elastic supply | Exists when a small change in price causes a major change in the quantity supplied. |
| inelastic supply | Exists when a change in a good's price has little impact on the quantity supplied. |
