Chapter 5: Supply Key Terms

A relation showing the quantities of a good producers are willing and able to sell at various prices during a given time period (other things constant).

• Law of Supply

• Supply

• Supply Curve

• Demand

The quantity of a good supplied during a given time period is usually directly related to its price (other things constant).

• Supply

• Law of Supply

• Supply Curve

• Law of Demand

A curve, or line, showing the quantities of a particular good supplied at various prices during a given time period (other things constant).

• Supply Curve

• Supply

• Law of Supply

• Elasticity of Supply

A measure of the responsiveness of quantity supplied to a price change, the percent change in quantity supplied divided by the percent change in price.

• Law of Supply

• Shift of a Supply Curve

• Elasticity of Supply

• Supply Curve

Change in quantity supplied resulting from a change in the price of the good (other things constant).

• Shift of a Supply Curve

• Movement Along a Supply Curve

• Law of Diminishing Returns

• Movement Along a Demand Curve

Increase or decrease in the supply resulting in a change in one of the determinants of supply other than the price of the good.

• Shift of a Supply Curve

• Law of Supply

• Shift of a Demand Curve

• Movement Along a Supply Curve

A period during which at least one of a firm's resources is fixed.

• Home Run

• Long Run

• Short Run

• Medium Run

A period during which all of a firm's resources can be varied.

• Long Run

• Home Run

• Short Run

• Medium Run

The total output of the firm per period.

• Total Output

• Total Product

• Total Resources

• Total Revenue

The change in total product resulting from a one-unit change in a particular resource (all other resources remaining constant).

• Marginal Product

• Marginal Revenue

• Marginal Output

• Marginal Utility