Supply Basics
This term describes the amount of a product offered for sale at all possible prices.
What is supply?
The price of pizza rises from $10 to $14 and pizzerias offer more pizzas. Is this a shift or a movement?
What is a movement along the curve, also called a change in quantity supplied?
A higher cost of resources shifts supply in this direction.
What is left?
Supply elasticity measures how much this responds to a change in price.
What is quantity supplied?
In the short run, only this kind of input can change
What is the variable input, such as labor?
According to the Law of Supply, when price rises, quantity supplied does this.
What is rises?
This is the only thing that can cause a movement along the supply curve.
What is a change in the good’s own price?
This is a government payment that encourages or protects an activity, such as farming.
What is a subsidy?
If quantity supplied changes more than proportionally to price, supply is this.
What is elastic?
This is the extra output from adding one more worker.
What is marginal product?
A normal supply curve has this kind of slope.
What is upward, or positive?
A change in supply is shown on a graph as a shift or a movement?
What is a shift of the entire curve?
Firms treat these like labor and raw materials, and raising them shifts supply left.
What are taxes?
Candy and toys have this kind of supply because they can be made quickly.
What is elastic?
In Stage I, marginal product does this.
What is increases?
This table lists the quantities a producer would supply at various prices.
What is a supply schedule?
A new oven lets bakeries make more bread at every price. Is this a shift or a movement? Name the direction and the factor.
What is a shift right, caused by technology?
This is the only factor that shifts market supply without changing any single firm’s supply.
What is the number of sellers?
The supply of this energy source is inelastic in the short run.
What is nuclear power?
Stage III is known by this name.
What is negative marginal returns?
To build the market supply curve, you do this to each firm’s supply at every price.
What is add them together?
The price of oil falls and producers offer less oil for sale. Is this a shift or a movement?
What is a movement down along the curve, a decrease in quantity supplied?
Henry Ford doubled car production from 500,000 to 1,000,000 by increasing this.
What is productivity?
Price rises 20% and quantity supplied rises 10%. Give the coefficient and the category.
What is 0.5, inelastic?
The first three workers have marginal products of 7, 13, and 18, so total product is this.
What is 38?