Ch. 5- Supply

willingness and ability of producers to offer goods and services for sale.

• producers

• markets

• supply

• demand

states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases.

• Law of Demand

• Law of Supply

• Law of Producers

• Law of Services

lists how much of a good or service an individual producer is willing and able to offer for sale at each price.

• supply schedule

• market supply schedule

• supply curve

• PPC (Productions Possibilities Curve)

lists how much of a good or service all producers in a market are willing and able to offer for sale at each price.

• supply schedule

• supply curve

• law of supply

• market supply schedule

shows the data from a supply schedule in graph form

• market supply curve

• supply curve

• marginal product

• supply schedule

shows the data from the market supply schedule in graph form

• market supply curve

• marginal product

• supply curve

• Supply/Demand schedule

the change in total output brought about by adding one more worker

• marginal product

• market supply curve

• supply curve

• market supply schedule

having each worker focus on a particular facet of production

• Demand

• Supply

• Specialization

• Opportunity Cost

occur when hiring new workers causes marginal product to decrease

• marginal cost

• specialization

• variable costs

• diminishing returns

expenses that the owners of a business must incur whether they produce nothing, a little or a lot

• marginal cost

• fixed costs

• variable costs

• total costs