Understanding Supply Concepts

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*Front:* Definition of Supply

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of a good or service that producers are willing to sell at various prices.

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*Front:* Law of Supply

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price increases, quantity supplied increases; as price decreases, quantity supplied decreases.

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*Front:* Supply Curve

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representation of the relationship between price and quantity supplied.

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*Front:* Shift in Supply Curve

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by factors other than price, such as technology or input costs.

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*Front:* Factors Affecting Supply

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cost, technology, number of sellers, expectations, taxes, and subsidies.

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*Front:* Elasticity of Supply

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of how much quantity supplied responds to a change in price.

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*Front:* Perfectly Inelastic Supply

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is unresponsive to price changes; vertical supply curve.

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*Front:* Perfectly Elastic Supply

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is infinitely responsive to price changes; horizontal supply curve.

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*Front:* Market Supply

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of all individual supplies for a good or service.

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*Front:* Supply Function

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