Substitute
goods – goods that you might purchase instead of a particular good. For example,
different types of bread are substitutes for each other.
Supply Function – the
mathematical function that relates price and quantity supplied for
goods or services. The supply function tells how many units
of a good that
producers are willing to produce and sell at a given price.
Supply Curve - the graphical representation of the
supply function. Because producers
would like to sell more at higher prices, the supply function slopes upward.
Total economic value – the sum of
all types of use and non-use values for a good or
service.
Use value – value derived from actual use of a good
or service. Uses may include
indirect uses. For example, enjoying a television show
about whales provides an
indirect use value for the whales.
Variable
costs – production costs that change when the level of production changes, so
that when more is produced the costs increase; as opposed to fixed costs.
Willingness
to Pay – the amount—measured in goods, services, or dollars—that a person is willing to give up to get a particular good
or service.