Supply
is the amount of a product that would be offered for sale at all possible prices in the market.
What is amount offered for sale at a given price?
Quantity supplied
. Specific amount offered for sale at a given price; point on the supply curve. Change in quantity supplied. Change in the amount offered for sale in response to a price change; movement along the supply curve. Change in supply.
What is the amount of a product available for purchase?
We defined
demand
as the amount of some product that a consumer is willing and able to purchase at each price. This suggests at least two factors, in addition to price, that affect demand.
What refers to the amount of a product offered for sale?
The amount offered for sale at a given price is called.
quantity supplied
. Responsiveness of quantity supplied to a change in price is called. supply elasticity.
How much a good is offered for sale at a specific price?
| A B | The amount of a good offered at a specific price is the quantity supplied | The __________ cost is the additional cost of producing one more unit marginal | Costs that do not change are fixed | Government may tax the sale or manufacture of a good with a(n) excise tax |
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What is the lowest legal price that can be paid for a product?
| A B | Price Ceiling Maximum legal price that can be charged for a product | Price Floor Lowest legal price that can be charged for a product | Equillibrium Price Price where quantity supplied equals quantity demanded; price that clears the market |
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What is a good or service offered for sale?
The
quantity supplied
is the amount of a good or service that is made available for sale at a given price point. In a free market, higher prices tend to lead to a higher quantity supplied and vice versa.
What is a change in demand?
A change in demand represents
a shift in consumer desire to purchase a particular good or service
, irrespective of a variation in its price. … An increase and decrease in total market demand is represented graphically in the demand curve.
When a product is in high demand prices usually?
It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply,
prices tend to rise
. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.
How do suppliers determine their price?
For certain categories, suppliers will determine their pricing
by how much they predict that a certain buyer is willing to pay
. If the buyer appears to not be too concerned with pricing (e.g., a big company buying a low cost service), the supplier will often inflate its markup.
Why is supply upward sloping?
The supply curve is upward sloping because,
over time, suppliers can choose how much of their goods to produce and later bring to market
. … Demand ultimately sets the price in a competitive market, supplier response to the price they can expect to receive sets the quantity supplied.
What happens as prices for a good or service rises?
Supply of goods and services
Price is what the producer receives for selling one unit of a good or service. An increase in price almost always leads to
an increase in the quantity supplied of that good or service
, while a decrease in price will decrease the quantity supplied.
For which product is demand likely to be the most elastic?
Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes.
High-priced products
often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.
What happens when the price of a good increases?
If the price goes up, the quantity demanded goes down (but demand itself stays the same).
If the price decreases, quantity demanded increases
. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
What is the principle that more will be offered for sale at high prices than at lower prices?
The Law of Supply
states that more output will be offered for sale at higher prices and less at lower prices. A change in quantity supplied is represented by a movement along the supply curve, whereas a change in supply is represented by a shift of the supply curve to the left or right.
How much of a good producers are willing to make and sell?
| A B | demand amount of good or service consumers able & willing to buy at various prices during specified time | supply amount of good or service producers can sell at various prices during a specified time | market process of freely exchanging goods & services between buyers & sellers |
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