Presentation on theme: "What’s Happening with Supply."— Presentation transcript: 1 What’s Happening with Supply. Show
2 and ability to sell a product
3 Less quantity is offered for sale when prices are low
4 Caused by a price change 5 Amount offered for sale at all prices 6 NICEPP or factors that cause a Change in Supply 7 Increase in Supply
P S S1 p p1 D Q q q1 S .: P ↓ & Q ↑ 8 Decrease in Supply S1 P
S p1 p D Q q1 q S .: P↑ & Q↓ 9 When supply increases: 10 Increase in Supply P S S1 p p1 D Q q q1 S .: P ↓
& Q ↑ 11 When supply decreases:
12 Decrease in Supply S1 P S p1 p D Q q1 q S .: P↑ & Q↓
13 Change in Quantity Supplied.
14 A production period long enough to change the amount of both variable and fixed input costs used in producing products. Long Run
15 The responsiveness of quantity supplied to a price change.
16 This is found by adding together all variable and fixed costs associated with production.
17 The broad category of fixed costs that includes interest paid on loans, rent, taxes, and executive salaries. Overhead
18 The extra revenue (money) from the sale of one more unit of output.
19 A government payment to a producer (supplier of products) to encourage or protect certain economic activity. Subsidy
20 Electronic business or exchange conducted over the internet.
21 A production period so short that only variable inputs (usually costs like labor) can be changed.
22 What does marginal mean in economics?
23 The extra output due to the addition of one more unit of input (like a worker or labor).
24 The costs of production that do not change when output changes.
25 A graphic portrayal showing a change in the amount of a single variable input (or cost) affects total output. Production Function
26 The extra-cost of producing one additional unit of output..
27 The production cost that varies as output changes. 28
Profit Maximizing Quantity of Output 29 The total output or production by a firm
(company). 30 The average price that every unit of output sells for.
31 The total amount earned by a company (a firm) from the sale of products. It is the average price of a good times the
quantity sold. Total Revenue 32 The stage of production where output increases at a decreasing rate as more
units of inputs of variable inputs are added. Diminishing Returns 33 The phases or stages of production that consist of increasing, decreasing, and
negative returns. 34 The production level where total costs equals total revenue Which terms describe costs that are incurred regardless of a firm's rate of production?Fixed Costs. Fixed costs are expenses that remain the same regardless of production output. Whether a firm makes sales or not, it must pay its fixed costs, as these costs are independent of output.
Which term describes rent control?Which term best describes rent control? price ceiling.
What term refers to the part of economics that deals with the behavior of small groups?Definition: Microeconomics is the study of individuals, households and firms' behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
Which term denotes the change in total income when one additional unit of output is added?Marginal revenue is the incremental gain produced by selling an additional unit. It follows the law of diminishing returns, eroding as output levels increase.
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