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KNOWLEDGE RATINGS
How much do you know about these words? Place an X in the appropriate column indicating your knowledge of each
word. If you know the word then attempt writing a definition for it. If you do not look it up.
TERM
DEFINITION
Supply
The amount of goods and services that producers are able and willing to sell at various
prices during a specified time period
Law of Supply
Suppliers will normally offer more for sale at higher prices and less at lower prices.
Supply Schedule
Supply Curve
Table showing quantities supplied at different possible prices
Upward-sloping line that graphically shows the quantities supplied at each possible
price
The money a business receives for its products or services over and above its costs.
The total of the supply schedules of businesses that provide the same good or service
The degree to which resources are being used efficiently to produce goods and
services
The methods or processes used to make goods and services
A government payment to an individual, business, or group in exchange for certain
actions.
Responsiveness of quantity supplied to a change in price
Situation in which quantity supplied is greater than quantity demanded; situation in
which government spends less than it collects in revenues
Situation in which quantity demanded is greater than quantity supplied
The price at which the amount producers are willing to supply is equal to the amount
consumers are willing to buy
Profit
Market Supply
Productivity
Technology
Subsidy
Supply Elasticity
Surplus
Shortage
Equilibrium price
Questions: Pages 462 – 465
Explain: What does the law of supply state?
Compare: Describe the difference between the supply curve and the supply schedule. What do the
supply curve and the supply schedule show?
Cause and Effect: How does the incentive of greater profits affect the quantity supplied?