Krueger, Explorations in Economics 1e, Module 13

Law of supply

An increase in the price of a good leads to an increase in the quantity supplied.

Market supply curve

A graphical representation of the quantity supplied by all firms in the market at various prices.

Supply curve

A graphical representation of the supply schedule, showing the quantity the firm will supply at each price.

Elasticity of supply

A measure of the responsiveness of the quantity supplied to price changes, calculated by dividing the percentage change in the quantity supplied by the percentage change in price.

Supply schedule

A table listing the quantity of the good that will be supplied at specified prices.

Quantity supplied

The amount of a good that firms are willing to supply at a particular price over a given period of time.

Perfect competition

The market cpndition in which there are many firms selling identical goods, firms are free to enter and exit the market, and consumers have full information about the price and availability of goods.

Profit

The total revenue a firm receives from selling its product minus the total cost of producing it.