Supply
This is two goods that are bought and used together.
Complementary Goods
This states that a good's price has an important effect on the amount people will buy
Law of Demand
A cost that does not change no matter how much is produced.
Fixed Cost
Assume plastic is used to make Tupperware. What will happen to the supply of Tupperware if the price of plastic decreases?
Shift to the Right
This is when a price of a good rises, people are more likely to exchange that good for and alternative good
Substitute
A graphic illustration of the quantities demanded at each price by individual consumers
Demand Curve
A cost that rises or falls depending on the quantity produced.
Variable Cost
Assume peanut butter and jelly are complements. What will happen to the demand or quantity demanded for jelly if the price of peanut butter increases?
The demand curve for jelly will shift to the left (decrease). Since you would buy less peanut butter when its price increases, you will also buy less jelly (since they are complements).
The higher the price, the larger the quantity produced
Law of Supply
IF the government announced that Tomato sauce is healthy and you should eat it regularly, the resulting effect on pizza demand curve would be
Shift to the right
The change in output from adding one more worker
Marginal Cost
Assume that Jello is a normal good. What will happen to the demand or quantity demanded of Jello if the income of the people who buy Jello goes down?
The demand curve for Jello will shift to the left (decrease). By definition, a normal good is a good we buy less of if income goes down.
Graphic illustration of the quantity supplied by all producers in a market at different prices.
Market Supply Curve
Table that illustrates the Law of Demand.
Demand Schedule
Land, labor, capital and enterprise
Factors of Production
Assume that turkey and ham are substitutes. What will happen to the demand or quantity demanded for ham if the price of turkey increases?
The demand curve for ham will shift to the right (increase). Since the price of turkey has gone up, some people will shift out of turkey and into ham.
Industries such as Orange growers, who can not increase production quickly have this type of supply
Inelastic Supply
Name two factors that cause a shift of the demand curve.
Income, Market Size, Consumer Tastes, Consumer Expectations, Substitutes, Compliments
What is the sum of fixed and variable costs?
Total costs
What is the vertical and horizontal axis always labeled?
Vertical: Price
Horizontal: Quantity