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AGGREGATE EXPENDITURE DETERMINANTS: An assortment of ceteris paribus factors that affect aggregate expenditures, but which are assumed constant when the aggregate expenditure line is constructed. Changes in any of the aggregate expenditures determinants cause the aggregate expenditure line to shift. While a wide variety of specific ceteris paribus factors can cause the aggregate expenditure line to shift, it's usually most convenient to group them into the four, broad expenditure categories -- consumption, investment, government purchases, and net exports. The reason is that changes in these expenditures are the direct cause of shifts in the aggregate expenditure line. If any determinant affects aggregate expenditures it MUST affect one of these four expenditures.
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                           SUPPLY SPACE: The area on or above a supply curve that indicates all possible price-quantity combinations acceptable to sellers. Buyers are willing and able to purchase any price-quantity combination that places them on or above the supply curve, but not above. Supply space includes all combinations of price and quantity supplied that are acceptable to sellers. It includes every price down to the minimum supply price for a given quantity supplied. Alternatively, it includes every quantity up to the maximum quantity supplied for a given supply price.Show Me The Space| Supply Space |  |
The exhibit at the right illustrates the supply space for stuffed Yellow Tarantulas, a cute and cuddly stuffed creature from the Wacky Willy Stuffed Amigos line of collectibles. Supply space is the highlighted area above (and including) the supply curve. This space contains all price-quantity combinations acceptable to sellers.More Than A CurveWhile the supply side of the market is usually represented by a supply curve, the selling process is often best reflected by the entire supply space. Buyers can operate anywhere within this space. It could be on the supply curve itself or far above the line.The supply curve actually only represents the lower boundary of the willingness and ability to sell. Invoking the observation that people prefer more to less means that the supply price on the supply curve is the lowest price, the minimum price, that sellers are willing and able to accept. However, sellers are also willing and able to receive more that the supply price for a given quantity. In fact, the higher the better. Suppose, for example, that sellers are faced with selling 400 Yellow Tarantulas. They are willing and able to accept $25 each, the supply price on the supply curve. Higher prices, however, are also acceptable. Is $35 each acceptable? Certainly. How about $45? No question. Are sellers willing and able to accept as much as $100,000? Without a doubt. All of these prices place the sellers in the supply space.
Recommended Citation:SUPPLY SPACE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 14, 2025].
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PURPLE SMARPHIN
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Today, you are likely to spend a great deal of time at a crowded estate auction hoping to buy either a T-shirt commemorating yesterday or a pair of handcrafted oven mitts. Be on the lookout for fairy dust that tastes like salt.
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The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
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