Supply
Supply comes primarily from what group
What are firms/companies/businesses
Popularity of Garden Gnomes Soars
Demand shifter = Consumer Tastes
The equation MC=variable costs (wages) % Marginal product.
What is Marginal Cost?
hot dog and buns
complements
The Law of Supply states that as prices increase, supply does this
What is an increase?
Prices of Bananas skyrocket - causing an effect on the production of Strawberry Banana Smoothies
Supply shifter = Costs of Resources
Only a change in price can cause a change in the quantity demanded. This change happens along this curve.
What is the demand curve?
iPhones and Android Phones...
A) compliments
B) Supplements
C) Substitutions
C) What are substitutes?
When the supply curve shifts to the right, what effect does it have on production costs?
goes down
Zombie apocalypse wipes out 50% of the US
Demand shifter=Market Size
Give one example of the substitution effect on demand.
replace one good with a less costly good.
The extra output due to the addition of one more unit of input
What is marginal product
Give an example of a government action that can cause a shift in supply
Excise tax, subsidy
Fads, Trends, Peer Pressure, and Personal Opinions altering demand are all examples of this
What is consumer tastes?
The sweater market sees a change...Taylor Swift decides to come out own brand of hand-knitted sweaters
Supply shift =# of Producers
A chart that helps a business determine at what prices demand will increase at any given time
What is a demand schedule?
What is the largest variable cost for most businesses?
What is labor?
The level of production at which marginal cost is equal to marginal revenue.
What is the break-even point?
Minimum goes from $7.25 to $8/hour
Demand shift = Income
What is fixed cost?
At what stage do diminishing returns happen?
What is stage II