Economics chapter 3, supply and demand

Advertising, fashion trends, and new product introductions serve to

a demand schedule shows

the theory of production deals with the relationship between the factors of production and 

supply curve is likely to be elastic for products that can be made quickly w/o a lot of capital

when producers offer fewer products for sale at each and every price

# of items sold multiplied by average price of each item yields the total revenue of a business

increase in the price of cameras results in a decrease in the demand for film, the products are

Productivity will decrease if workers are unmotivated

four important measures of cost are: total cost, fixed cost, variable cost, and taxes

Theory of Production deals w relationship between factors of production and the output of goods

An increase in the cost of inputs can cause the supply curve to shift to the right 

A demand curve illustrates the quantity demanded at all possible prices at a given time.

marginal analysis compares the additional benefits of an action to its additional costs.

profits will be maximized when marginal revenue

fixed cost is the cost that a business incurs even if there are no employees and no production

The Law of Demand states less of a product will be purchased at low prices than at high prices

Decrease in output as each new input is +, as in the addition of worker, describes Stage 1 prod

total cost is the sum of the 

the supply of a product normally decreases if

because a modest price increase has little or no effect, the demand for the product is

mix of variable costs + fixed costs that a business faces affects the way the business operates

Production function is relationship of changes in output to different amounts of a single input

Market supply curve shows quantities offered at various prices by all firms in a given market 

when manufacturer reduced the price of item by 30%, profits declined by 30%, demand for item is