Supply
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| Economists assume producers try to maximize ______________. | profit
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| _____________________ is the total dollars received from consumers. | Total revenue
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| _______________________ includes the cost of all resources used by a firm in producing goods and services. | Total cost
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| ___________ indicates how much of a product producers are both willing and able to sell at each possible price during a given period of time. | Supply
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| The law of supply states that price and quantity supplied have a ___________ relationship. | direct
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| As price goes up, the quantity supplied goes ____________ , and as price goes down, the quantity supplied goes ______________. | up; down
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| What are the 2 things that explain the law of supply? | 1.Producers offer more for sale when the price rises because producers are more willing to supply the good.
2.Higher prices also increase the producer’s ability to supply the good
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| A __________________________ is a table that shows how much of a product producers supply at various prices. | supply schedule
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| A ______________________ is the graphical representation of the law of supply. | supply curve
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| ___________________ is the amount of product that producers are willing an able to sell at a specific price. | Quantity supplied
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| The sum of the individual supplies of all producers in the market is called the ______________________________. | market supply
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| The supply curve slopes up and has a _____________ slope. | positive
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| Elasticity of supply = _________________ . | percentage change in quantity supplied divided by percentage change in price
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| The elasticity of supply measures how ________ producers are to price change. | responsive
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| Supply is __________ if greater than 1.0. | elastic
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| Supply is ________________ if equal to 1. | unit-elastic
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| Supply is _____________ if less than 1. | inelastic
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| What are the factors that affect the elasticity of supply? | 1. How costly it is to change output
2. Length of time to adjust
3. The ease of increasing quantity supplied
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| The slower that marginal cost rises as output expands, the greater the good’s _________________ of supply. | elasticity
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| The elasticity of supply is greater in the ______________ (short-run / long-run) because producers have more time to adjust. | long-run
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| The more difficult it is for producers to increase quantity supplied in response to a higher price, the more __________________ (elastic/ inelastic) supply will be. | inelastic
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| What are the factors that cause a shift in supply? | 1. Cost of resources
2. Productivity
3. Changes in technology
4. Expectations
5. Number of sellers in the market
6. Taxes/subsidies
7. Government regulations
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| A _________________ along a supply curve is caused by a change in price and results in a change in the quantity supplied. | movement
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| A ___________ of the supply curve is caused by one of the determinants of supply other than price and results in a new supply curve. | shift
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| Price is always shown on the ___________ axis and quantity is always shown on the ___________ axis in economics. | vertical (y); horizontal (x)
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| A change in technology that lowers the cost of producing a good shifts the supply curve to the ________. | right
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| An expectation of higher prices in the future for oil shifts the current supply curve of oil to the _______. | left
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| A ________________________________ is a graphic portrayal showing how a change in the amount of a single variable input affects total output. | production function
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| Economists focus on the ________ run, a production period so short that only variable inputs (usually labor) can be changed, whereas in the ___________ run a firm can change all of its productive resources, including capital. | short; long
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| __________ product is the total output or production by a firm and ________________ product is the extra output due to the addition of one more unit of output. | Total; marginal
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| _________________ marginal returns is the phase in which the marginal product of each additional worker increases. | Increasing
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| _________________ marginal returns is the phase in which output increases at a decreasing rate as more units of variable input are added. | Diminishing
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| _________________ marginal returns is the phase of production where marginal product of each additional worker is negative. | Negative
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| A _____________ cost is one that does not change in the short run, no matter how much output is produced and is sometimes called _________________. | fixed; overhead
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| __________________ cost changes with the amount of output produced and may include wages paid to labor, payment for natural resources, etc. | Variable
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| __________________ cost is the sum of fixed cost and variable cost (TC = FC + VC). | Total
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| __________________ cost is the extra cost of producing one additional unit of production. | Marginal
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| Total ________________ is the total amount earned by a firm from the sale of its products and is calculated by multiplying average ______________ by quantity. | revenue; price
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| _____________________ revenue is the change in total revenue from selling one additional unit of output. | Marginal
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| Profit-maximizing quantity of output occurs at the level of production where ______________________ is equal to __________________________ (MR =MC). | marginal revenue; marginal cost
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| The firm needs to find its _______________________________ the level of production that generates just enough revenue to cover its total operating cost (TR = TC). | break-even point
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teacherdavidfrost
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