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Description
Term
A period of time during which at least one factor of production cannot be varied
Short Run
The difference between the price a producer is willing to accept for a product and the price they actually receive
Producer Surplus
When a percentage change in price causes an infinite change in the quantity supplied
Perfectly Elastic Supply
When a percentage change in price causes a smaller percentage change in the quantity supplied
Relatively Inelastic Supply
A situation in which prices fluctuate wildly over a short period of time
Volatility
Any factor besides price that can cause a change in supply and thus a shift in the supply curve
Condition of Supply
When a percentage change in price causes no change in the quantity supplied
Perfectly Inelastic Supply
The amalgamation of a single block of shares in a public limited company bought on and for the purpose of future sale on the stock market
Stock
A part of a public limited company that forms a unit of ownership and is offered for sale by the company so as to raise capital for the said company, which is usually bought so as to provide a dividend to the holder
Share
The way in which price serves to allocate scarce resources when demand outstrips supply
Rationing
Description
Term
A group of firms that cooperate in a market to control prices and limit competition
Cartel
The positive relationship between supply and price
Law of Supply
When a percentage change in price causes a change in the quantity supplied of the exact same percentage
Unit Elasticity of Supply
A natural resource that must be mined or extracted
Hard Commodity
The degree of responsiveness of supply to changes in price
Price Elasticity of Supply
A period of time during which all factors of production can be varied
Long Run
The only price at which demand and supply are equal thus meaning there is no shortage or surplus and all supply is demanded
Equilibrium Price
An increase in supply coupled with an increase in price
Extension in Supply
What is shown by the following calculation: (%∆QS)/(%∆P)?
Price Elasticity of Supply
An organisation that brings together factors of production in order to produce output