Name: Date: 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?