the willingness and the ability to supply | two factors of supply |

the total change in production that results from hiring one more employee | marginal product |

add fixed costs and variable costs | how to calculate total cost |

change in total cost/change in total product | how to calculate marginal cost |

input costs, labor productivity, government action, technological advances, number of producers, producer expectations | 6 factors that cause shifts in supply |

price | factor that causes a shift in quantity supplied |

elasticity of supply | how responsive producers are to changes in price |

price times quantity | how to calculate total revenue |

marginal cost and marginal revenue | profit-maximizing output is where what two things are equal |

total revenue – total costs | how to calculate profit |

law of diminishing marginal utility | law that explains the shape of the demand curve |

normal goods | more is demanded when income increases |

income, market size, consumer tastes, consumer expectations, substitute goods, complimentary goods | 6 factors that shift demand curves |

([original quantity – new quantity] / original quantity x100)/([original price – new price] / original price x 100) | how to calculate elasticity of demand |

>1 elastic, <1 inelastic, =1 unit elastic | elasticity of demand percentages |