Chapter 5: Supply

1. A concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant.
3. 3 stages; Increasing returns, diminishing returns, negative returns.
4. Total output produced by the firm.
5. The quantity of a commodity that producers are willing to sell at a particular price at a particular point of time.
10. A table which shows how much one or more firms will be willing to supply at particular prices under the existing circumstances.
13. states that in the short run output will change as one input is varied while the others are held constant.
14. Output increases at a diminishing rate as more units of a variable input are added.
17. A period of production long enough for producers to adjust the quantities of all their resources, including capital.
18. The amount of a product that producers and firms are willing to sell at a given price when all other factors being held constant.

2. The change in amount offered for sale in response to a change in price.
3. A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
4. The relationship between he factors of production and the output of goods and services.
6. A period of production that allows producers to change only the amount of the variable input called labor.
7. Unprocessed natural products used in production.
8. A graphic representation of the relationship between product price and quantity of product that a seller is willing and able to supply.
9. The extra output or change in total product caused by the addiction of one more unit of variable input.
11. A situation where suppliers offer different amounts of products for sale at all the possible prices in the market.
12. A fundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied.
15. The supply curve that shows the quantities offered at various prices by all firms that offer the production for sale in a given market.
16. A measure of the way in which quantity supplies responds to a change in price.