Ch.4+Supply

Terms: Law of Supply: states producers supply more goods and services when they can seel them at higher prices, and fewer goods and services when they must sell them at lower prices. Supply: quantity of goods and services that producers are willing to offer at various possible prices during a given time period Quantity Supplied: amount of a good or service that a producer is willing to sell at each particular price Profit: amount of money remaining after producers have paid all of their costs Costs of Production: the total cost of materials, labor, and other inputs required in the manufacture of a product Supply Schedule: a table that lists each quantity of a product that producers are willing to supply at various prices Supply Curve: a graphic representation of a supply schedule, showing the relationship between the price of an item and the quantity supplied during a given time period, with all other things being equal. Elasticity of Supply: the degree to which price changes affect the quantity supplied Elastic Supply: a small change in price causes a major change in quantity supplied Inelastic Supply: a change in a good's price has little impact on the quantity supplied Determinant of Supply: a nonprice factor that influences the available supply of a good or service Tax: a required payment of money to the government to help fund government services. Subsidies: payments to private businesses by the government. Regulations: rules about how companies conduct business. Total Product: all of the product a company makes in a given period of time with a given amount of input. Marginal Product: the change in output generated by adding one more unit of input. Law of diminshing ruturns: this law describes the effect that varying the level of an input has on total and marginal product. Fixed Cost: Production costs that do not change as the level of output changes. Depreciation: lessening in value Overhead: the companies total fixed costs. Variable Costs: change as the level of output changes. Total Costs: the sum of the fixed and variable production costs. Marginal Costs: the additional costs of producing one more unit of output.

Topics: Products with elastic supply usually can be made //quickly//, //inexpensively,// and with //a few readily available resources//.
 * Elastic Supply**

Products with inelastic supply require an //abundance// of //time, money,// and //resources// that are //not easily accessible/available//.
 * Inelastic Supply**

-prices of resources -government tools -technology -competition -prices of related goods -producer expectations These factors can impact supply either negatively or positively.
 * Determinants of Supply** include:

-helps a manufacturer determine how much to supply to the market -costs are any goods or services used to make a product __costs categories__ -fixed costs (examples: rent, interest on loans, property insurance premiums, salaries, and local and state property taxes) -variable costs (ex.: raw materials and wages) -total costs ( fixed and variable added together) -marginal costs- allow business to determine the profibility of increasing or decreasing production by a few units
 * Costs of Production**

Connection to everyday life: example of real world supply and demand fluctuation : [|nickel supply and demand] [] [] []