Show:
Laws
Costs
Government Intervention
Elasticity
Supply Curve
100
The economic notion that suggests at higher prices is a greater supply.
What is the law of supply?
100
Costs that never change such as capital goods.
What are fixed costs?
100
A tax imposed that can reduce supply by increasing production costs.
What is an excise tax?
100
What is the key factor that determines whether the supply of a good will be elastic or inelastic?
TIME!!
100
The suppley curve rises from ________ to __________.
What is left to right?
200
A brand name or"superior" good.
What is a normal good?
200
Costs that rise and fall depending on the quantity produced.
What are variable costs?
200
Government intervention in the market place.
What is regulation?
200
Increased income will have this effect on the demand curve.
What is move RIGHT or INCREASE.
200
Training different workers to concentrate on different skills in order to maximize efficiency.
What is specialization?
300
The law of supply describes the relationship between what two things?
What are price and quantity?
300
The additional costs from producing one more unit of a good.
What are marginal costs?
300
A minimum price, such as minimum wage is an example of this.
What is a price floor?
300
Name 3 non-price factors that cause changes in supply.
Cost of production, tech, weather, customer service, quality
300
A seller has the freedom to sell to a buyer which is an example of?
What is voluntary exchange?
400
Supply>Demand= _______.
What is a surplus?
400
Advances in technology will usually _______ costs and ___________ supply levels.
What are lower and increase?
400
The major industry most affected by government subsidies.
What is farming?
400
When a business is calculating operating costs, it must include:

A. Total Costs

B.Fixed Costs

C.Variable Costs

C. Variable Costs
400
If supply is elastic it reacts strongly to changes in this.
What is price?
500
Quantity supplied=Quantity demanded determines this.
What is equilibrium price?
500
Name 4 variable costs.
What is:

oil, raw materials, labor, electricity...

500

If a firm's product is perishable, where is the firm usually located?

A. in a city

B. near its consumers

C. location doesn't matter

B. Near its consumers. GAS GAS GAS
500
When a percentage change in price is perfectly matched by an equal percentage change in quantity supplied, elasticity is one. We say supply is:
What is unitary elastic?
500
Any factor that can change is considered a ______.
What is a variable?