Examlex
A decrease in the price of rice from 50 cents to 40 cents a pound increases consumption from 16 to 20 tons a week in Gainesville and from 160 to 200 tons in the larger city of Miami.The elasticity of demand for rice is
Law Of Supply
A principle that states there is a direct relationship between the price of a good and the quantity of it producers are willing to supply. As the price of a good increases, producers will wish to supply more of it. As the price decreases, producers will wish to supply less.
Producers
Individuals or businesses that create goods or provide services.
Supply
The total amount of a good or service available for purchase at any given price level in a market.
Producer Surplus
The difference between the amount a producer is willing to accept for a good and the actual price they receive.
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