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ZERO-BASE BUDGET: A method of budgeting expenditures in which each expenditure is justified on its overall merits rather than being based on the budget for the previous year. A zero-base budget is most often proposed (but seldom implemented) for governments. Governments generally establish budget expenditures based on expenditures for the previous year. If, for example, budget expenditures last year were $100 billion, the requested budget for this year might be set at $110 billion. The existing $100 billion is a "given" and only the extra $10 billion is justified. With a zero-base budget, the entire $110 billion is justified.
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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, 2000-2019. [Accessed: September 15, 2019].
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ORANGE REBELOON
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Today, you are likely to spend a great deal of time surfing the Internet trying to buy either a battery-powered, rechargeable vacuum cleaner or a remote controlled World War I bi-plane. Be on the lookout for high interest rates.
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
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"Most human beings have an almost infinite capacity for taking things for granted. " -- Aldous Huxley, writer
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