Term
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Definition
| costs that change according to the activity/volume of the business and production (extra cost in dollars per item OR average item cost) |
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Term
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Definition
| all the costs that aren't directly related to what you are selling for example: chairs, banners, markers etc. |
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Term
| Marginal Cost Calculation |
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Definition
| cost to create your item//product |
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Term
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Definition
price charged-variable cost= profit margin
total fixed costs/profit margin = breakeven number
breakeven number X price = Breakeven dollars |
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Term
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Definition
| the (1) willingness and ability of sellers to produce and offer to sell different quantities of a good (2) at different prices (3) during a specific period of time |
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Term
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Definition
| As the price of a good rises; the quantity supplied of the good rises; and as the price of a good falls, the quantity supplied of the good falls. When prices go up you want to sell more |
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Term
| Supply vs. Quantity supplied |
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Definition
| changes in supply cause a shift changes in quantity supplied is a movement along the curve |
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Term
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Definition
sensitivity to price change
affects the quantity supplied or demanded |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| the process of having sellers and buyers together, not necessarily physically, it can be over the internet or in some other form |
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Term
| Opportunity Cost in Production |
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Definition
| the value of what is forgone when choosing to produce |
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Term
| factors that change supply of products and services (shift curve left and right) |
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Definition
| changes in price of relevant resources, technology, number of sellers, expectations of future prices, taxes, subsidies,and government restrictions |
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Term
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Definition
| 1) the willingness and ability of buyers to purchase different quantities of a good (2) at different prices (3) during a specific period of time. |
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Term
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Definition
| as the price of a good rises, quantity demanded of that good falls, as the price of a good falls, quantity demanded of that god rises, ceteris paribus- "with other things the same," or "all other things being equal or held constant." OR ASSUMING NOTHING ELSE CHANGES |
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Term
| demand vs. quantity demanded |
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Definition
change in demand: shifts entire curve
change in quantity demanded: o A movement from one point to another point on the same demand curve (change in price) |
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Term
| demand elasticity and in-elasticity |
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Definition
| sensitivity to price change. if someone is buying an item that is taking up alot of their income they, the demander, is sensitive to the price of the product. |
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Term
| what determines demand elasticity? |
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Definition
| the consumer and the pricing of the product |
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Term
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Definition
| get the demander to buy more of a product something that they get in return for buying the product |
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Term
| factors that change demand for products and services (shift in curve left or right) |
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Definition
| changes in income, preferences, price of related goods(substitutes and complements), number of buyers, expectations of future price |
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Term
| Market clearing/equilibrium price/point |
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Definition
| the point on the supply and demand graph where the demander and supplier agree on price. the point where everything is ideal |
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Term
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Definition
| when you have to much of a product/service/resource price floors do this |
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Term
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Definition
| not enough of something. price ceilings create this |
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Term
| the effects of price ceilings and price floors |
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Definition
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Term
| the effect of shifts of Demand and/or Supply on Market-clearing Price and Quantity |
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Definition
| the clearing price changes when there is a shift of either the supply and/or demand curve |
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Term
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Definition
| fixed and marginal, everything you put into the company |
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Term
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Definition
| when one goes up the other goes up (supply) |
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Term
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Definition
| when one goes up the other goes down (demand, because if the price is lower the quantity demanded goes up but if the price goes up the quantity demanded goes down) |
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Term
| The Law of Diminishing Marginal Utility |
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Definition
| for a given time period, the marginal (additional) utility or satisfaction gained by consuming equal successive units of a good will decline as the amount consumed increases. |
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