The science that studies the choices of people trying to satisfy their wants in a world of scarcity. Tangible Intangible
|
|
- Cuthbert Norton
- 5 years ago
- Views:
Transcription
1 economics Chapter 1 The science that studies the choices of people trying to satisfy their wants in a world of scarcity. economic system The way in which a society decides what goods to produce, how to produce them, and for whom goods will be produced. Tangible Intangible Wants tangible Able to be felt by touch. intangible Not able to be felt by touch.
2 microeconomics The branch of economics that deals with human behavior and choices as they relate to relatively small units an individual, a business firm, or a single market. macroeconomics The branch of economics that deals with human behavior and choices as they relate to the entire economy. opportunity cost The most highly valued opportunity or alternative forfeited when a choice is made. resource Anything that is used to produce goods or services. In economics, resources are also called factors of production. land All the natural resources found in nature. Water Minerals Animals Plants Forests labor The physical and mental talents that people contribute to the production of goods and services.
3 capital Produced goods that can be used as resources for further production. Such things as factories, machines and farm equipment. entrepreneurship The special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things. rent The payment to the resource land wages The payment to the resource labor. interest The payment to the resource capital. scarcity The condition in which our wants are greater than the resources available to satisfy those wants.
4 rationing device A means for deciding who gets what portion of the available resources and goods. Chapter 2 free enterprise An economic system in which individuals (not government) own most, if not all, the resources and control their use. socialism An economic system in which government controls and may own many of the resources. profit The amount of money left over after all the costs of production have been paid. Exists when total revenue exceeds total costs. total cost The average cost (or expense) of a good times the number of units of the good sold.
5 excludable public good A public good that individuals can be excluded (physically prohibited) from consuming. nonexcludable public good A public good that individuals cannot be excluded (physically prohibited) from consuming. Chapter 3. law of demand demand The willingness and ability of buyers to purchase a good or service. quantity demanded The number of units of a good purchased at a specific price.
6 law of diminishing marginal utility demand curve A graphical representation of the law of demand.
7 demand curve A graphical representation of the law of demand. 2 Factors That Can Cause the Curve to Shift Change along a curve Curve Shifts Left (Decrease) Curve Shifts Right (Increase) Factors That Cause Shifting Curves
8 1. Income A change in income can cause an increase or decrease in quantity demanded If Income goes up increases for a normal good. decreases for an inferior good. remains constant for a neutral good. If Income goes down decreases for a normal good. increases for an inferior good. remains constant for a neutral good. normal good A good the demand for which rises as income rises and falls as income falls. inferior good neutral good A good the demand for which falls as income rises and rises as income falls. A good the demand for which remains unchanged as income rises or falls.
9 2.Preferences 3. s of Related Goods Substitutes Complements substitute for substitute A similar good. With substitutes, the price of one and the demand for the other move in the same direction. Pepsi is a substitute for CocaCola. When the price of CocaCola goes up, demand for the substitute (Pepsi) goes up. for substitute complement Pepsi is a substitute for CocaCola. When the price of CocaCola goes down, demand for the substitute (Pepsi) goes down. A good that is consumed jointly with another good. With complements, the price for one and the demand for the other move in opposite directions.
10 Ski Boots and Ski Masks are complements of Skis. Ski Boots and Ski Masks are complements of Skis. When the price of skis go up, the demand for boots and masks go down When the price of skis goes down, the demand for boots and masks go up 4. Number of Buyers 4. Number of Buyers As the number of buyers in an area increase, the demand curve will shift to the right. As the number of buyers in an area decrease, the demand curve will shift to the left. But if demand changes by more than the price increases or decreases, demand is elastic. elasticity of demand
11 elastic demand The type of demand that exists when the percentage change in quantity demanded is greater than the percentage change in price. goes up by 10%, goes down by 20%. 10% up 20% down goes down by 5%, goes up by 15%. down 5% 15% up inelastic demand The type of demand that exists when the percentage change in quantity demanded is less than the percentage change in price. goes down 50%, demand increases only 25%. goes up 30%, demand decreases only 10%. 50% down up only 25% up 30% down only 10%
12 unit elastic demand goes up 7%, demand goes down 7% The type of demand that exists when the percentage change in quantity demanded is the same as the percentage change in price. price demand goes down 45%, demand goes up 45%. price demand Determinants of Elasticity of 1. Number of Substitutes 2. Luxuries versus Necessities 3. Percentages of Income Spent on the Good 4. Time 1. Number of Substitutes The demand for goods with many substitutes is likely to be elastic. A good such as bread has many substitutes. If the price goes up on one brand, there are many others to choose from. 1. Number of Substitutes Whereas, a good such as heart medication would have fewer substitutes. If the price were to go up, demand would likely remain high. A good with few substitutes would likely be inelastic.
13 2. Luxuries versus Necessities 2. Luxuries versus Necessities Luxuries are goods that people don t need to survive. for luxuries is more likely to be elastic. for necessities such as food is more likely to be inelastic. 3. Percentage of Income Spent on 3. Percentage Good of Income Spent on the Good Restaurants 20% of income Buyers are more responsive to price changes in goods on which they spend a larger percentage of their income. Candy 1 % of income 4. Time As time passes, consumers have greater opportunities to change quantity demanded in response to price change, the more elastic the demand. The less time you have to respond to price changes, the more inelastic the demand.
Economics Review. Part 2
Economics Review Part 2 . law of demand demand quantity demanded The willingness and ability of buyers to The number of units of a good purchased at a specific price. purchase a good or service. law of
More informationChapter One (cont ) Economics is defined as: The science that studies the choices people make in a world of scarcity
Economics Review Chapter One Wants exceed resources to fill wants Therefore scarcity exists Therefore we must make choices Every time we make a choice, we leave behind an opportunity cost, the most likely
More informationChapter 1 What Economics is About
Chapter 1 What Economics is About 1 Scarcity, Choice & Opportunity Cost 2 The Economic Way of Thinking 3 Economic Language What Economics Is About 1 Scarcity, Choice, and Opportunity Costs want A thing
More informationChapter 4 Review: Demand. CHAPTER 4 Graphic Organizer
Chapter 4 Review: Demand CHAPTER 4 Graphic Organizer CHAPTER 4, SECTION 1 Key Concepts What Is Demand? A market is a place where people buy and sell things. A market has two sides. There is a buying side
More informationChapter 4: Demand. Section I: Understanding Demand. Section II: Shifts of the Demand Curve. Section III: Elasticity of Demand
Chapter 4: Demand Section I: Understanding Demand Section II: Shifts of the Demand Curve Section III: Elasticity of Demand Section 1: Understanding Demand LEQ: What is the law of demand? VOCAB: demand
More informationCHAPTER 4, SECTION 1
DAILY LECTURE CHAPTER 4, SECTION 1 Understanding Demand What Is Demand? Demand is the willingness and ability of buyers to purchase different quantities of a good, at different prices, during a specific
More informationManagerial Economics, 01/12/2003. A Glossary of Terms
A Glossary of Terms The Digital Economist -A- Abundance--A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system. Arbitrage
More informationPrinciples of MicroEconomics: Econ102
Principles of MicroEconomics: Econ102 Price Elasticity of Demand: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of
More informationElasticity and Its Applications
Elasticity and Its Applications 1. In general, elasticity is a. a measure of the competitive nature of a market. b. the friction that develops between buyer and seller in a market. c. a measure of how
More informationChapter 1. The Art and Science of Economic Analysis. These slides supplement the textbook, but should not replace reading the textbook
Chapter 1 The Art and Science of Economic Analysis These slides supplement the textbook, but should not replace reading the textbook What is the economic problem? Because we live in a world of scarce resources,
More informationECON (ENT) COURSE LESSON THREE. Supply and Demand. CHAPTER 7 Supply and Demand. Lesson Three Supply and Demand 93
ECON (ENT) COURSE LESSON THREE Supply and Demand CHAPTER 7 Supply and Demand Lesson Three Supply and Demand 93 EXERCISES Matching (28 points) From the list below, select the term that matches each of the
More informationProducing Goods & Services
Producing Goods & Services Supply is the quantities of a product or service that a firm is willing and able to make available for sale at all possible prices. The Law of Supply states that the quantity
More informationProducing Goods & Services
Producing Goods & Services Supply is the quantities of a product or service that a firm is willing and able to make available for sale at all possible prices. The Law of Supply states that the quantity
More information1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. Quantity demanded vs demand: quantity demanded is
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
Economics 6 th edition 1 Chapter 6 Elasticity: The Responsiveness of Demand and Supply Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 The Price Elasticity
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?
More informationSupply and Demand. Objective 8.04
Supply and Demand Objective 8.04 Supply and Demand Pages 258-259 259 copy bold terms and give a definition or description of each. Page 261 Copy the questions Worksheet A-2A 1. Surplus When the amount
More informationWHAT IS DEMAND? CHAPTER 4.1
Economics Unit 2 TEACHER WHAT IS DEMAND? CHAPTER 4.1 What is demand? THE DESIRE, ABILITY, AND WILLINGNESS TO BUY A PRODUCT. What is microeconomics? THE AREA OF ECONOMICS THAT DEALS WITH BEHAVIOR AND DECISION
More information1.2.3 Price, Income and Cross Elasticities of Demand
1.2.3 Price, Income and Cross Elasticities of Demand Price elasticity of demand The price elasticity of demand is the responsiveness of a change in demand to a change in price. The formula for this is:
More informationGACE Economics Assessment Test I (038) Curriculum Crosswalk
Subarea I. Fundamental Economic Concepts (20%) Objective 1: Demonstrates an understanding of the fundamental concepts of economics A. Understands the concepts of scarcity, choice, and opportunity cost
More informationDEMAND. Economics Unit 2 Just the Facts Handout
DEMAND Economics Unit 2 Just the Facts Handout What is Demand? A market is a place where people buy and sell things. A market has two sides. There is a buying side and a selling side. The buying side of
More information!"#$#%&"'()#*(+,'&$-''(.#/-'((
Lecture 1 Basic Concerns of Economics What is Economics! Economics is the study of how society manages its scarce resources. o Economic Problem: How a society can satisfy unlimited wants with limited resources
More informationChapter 4: Understanding Demand
SCHS SOCIAL STUDIES What you need to know UNIT TWO 1. What a competitive market is and how it is described by the supply and demand model 2. What a supply curve shows 3. The difference between a movement
More informationStudy Unit 1. Elasticity SIM University. All rights reserved. Introduction
Study Unit 1 Elasticity Introduction Elasticity of Demand Elasticity and Total Expenditure Income Elasticity of Demand Cross Elasticity of Demand Elasticity of Supply Elasticity of Demand Elasticity of
More information1. Explain 2. Describe 3. Create 4. Interpret
Law of Demand Section:- B Objectives 1. Explain the law of demand. 2. Describe how the substitution effect and the income effect influence decisions. 3. Create a demand schedule for an individual and a
More informationUNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
More informationAP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
More information1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3
1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want
More informationSupply and Demand. Worksheet A-2A 2014
Supply and Demand Worksheet A-2A 2014 Worksheet A-2A 1. Surplus When the amount supplied exceeds the demand 2. Shortage When the amount demanded exceeds the supply 3. Utility The power to satisfy your
More informationElasticity and Its Application
Elasticity and Its Application Elasticity... is a measure of how much buyers and sellers respond to changes in market conditions allows us to analyze supply and demand with greater precision. Journal Question-Name
More informationMidterm 2 - Solutions
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis November 13, 2009 Instructor: John Parman Midterm 2 - Solutions You have until 11:50am to complete this exam. Be certain to
More informationQuestion # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income: Will be risk averse. Will be risk neutral. Will be risk loving. Cannot decide without
More informationREVIEW FOR TEST I (Chapters 1-4 of Case, Fair, Oster text) HCCS Spring Branch Campus Instructor: J.H. Ewing. What Economics is About
REVIEW FOR TEST I (Chapters 1-4 of Case, Fair, Oster text) HCCS Spring Branch Campus Instructor: J.H. Ewing What Economics is About Economics deals with the human condition that arises when Wants > Limited
More informationECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG
ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER
More informationEco402 - Microeconomics Glossary By
Eco402 - Microeconomics Glossary By Break-even point : the point at which price equals the minimum of average total cost. Externalities : the spillover effects of production or consumption for which no
More informationPrinciples of BABY THOMAS 2016
Principles of 1 UNIT I INTRODUCTION TO MACROECONOMICS Learning Objectives 1. Introduction to economics, meaning and definition of economics, Principles of economics 2. Economic models, the circular flow
More informationChapter 4 DEMAND. Essential Question: How do we decide what to buy?
Chapter 4: Demand Section 1 Chapter 4 DEMAND Essential Question: How do we decide what to buy? Key Terms demand: the desire to own something and the ability to pay for it law of demand: consumers will
More informationWJEC (Eduqas) Economics A-level
WJEC (Eduqas) Economics A-level Microeconomics Topic 2: Demand and Supply in Product Markets 2.4 Price, income and cross price elasticities of demand and supply Notes Price elasticity of demand The price
More informationChapter 5: Price Controls: Multiple Choice Questions Chapter 6: Elasticity Multiple Choice Questions
Chapter 5: Price Controls: Multiple Choice Questions 1. ANSWER: d. ceiling. 2. ANSWER: a. a shortage, which cannot be eliminated through market adjustment. 3. ANSWER: b. the equilibrium price is below
More informationLevel: 5 Learning Hours: 160 Learning Outcomes and Indicative Content:
Unit Title: Economic Principles and Their Unit Code: Econs Application to Business Level: 5 Learning Hours: 160 Learning Outcomes and Indicative Content: Candidates will be able to: 1. Explain the problem
More informationECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one
ECO401 Current Online 85 Quizzes Question Repeated ignore In Green color are doubted one Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income:
More informationPostgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)
Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100
More informationTest Yourself: Basic Terminology. If all economists were laid end to end, they would still not reach a conclusion. GB Shaw
Test Yourself: Basic Terminology If all economists were laid end to end, they would still not reach a conclusion. GB Shaw What is economics? What is macroeconomics? What is microeconomics? Economics is
More information2000 AP Microeconomics Exam Answers
2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift
More information- Scarcity leads to tradeoffs - Normative statements=opinion - Positive statement=fact with evidence - An economic model is tested by comparing its
Macroeconomics Final Notes: CHAPTER 1: What is economics? We want more than we can get. Our inability to satisfy all of our wants is called scarcity. All resources are finite even if they are abundant.
More informationClick to return to In this Lesson
In This Lesson I Chapter 1 What Economics is About Paul Schneiderman, Ph.D., Professor of Finance & Economics, Southern New Hampshire University 2011 South Western/Cengage Learning Goods and Bads and Resources
More informationDemand: The desire, ability, and willingness to buy a product.
What is Demand? Demand: The desire, ability, and willingness to buy a product. Impact of Demand: Demand determines what the producers will produce and in what quantities. Remember Consumer Sovereignty??
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related
More informationUnit 2: Theory of Consumer Behaviour
Name: Unit 2: Theory of Consumer Behaviour Date: / / Notations and Assumptions A consumer, in general, consumes many goods; but for simplicity, we shall consider the consumer s choice problem in a situation
More informationEQ: What is Income Elasticity of Demand?
EQ: What is Income Elasticity of Demand? Changes in Consumer Income shift the demand curve: Normal Goods goods that are more desirable to consumers; when people have more money, they buy more normal goods
More informationWhat is Micro Economics?
What is Micro Economics? 2 Micro Economics A.K.A Price Theory/Partial Analysis MIKRO means Small Study of individual units of the economy Explains price determination in both commodity and factor market
More information2007 Thomson South-Western
Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity
More informationDemand - the desire, ability, and willingness to buy a product.
Demand - the desire, ability, and willingness to buy a product. 1. You must have the desire for the product 2. You must be able to make a purchase 3. You must be willing to make a purchase 4. Purchases
More informationChapter 1: What is Economics? A. Economic questions arise because we face scarcity we all want more than we can get.
Chapter 1: What is Economics? I. Definition of Economics A. Economic questions arise because we face scarcity we all want more than we can get. 1. Because we are unable to satisfy all of our wants, we
More informationCH 1: Economics and Economic Reasoning
CH 1: Economics and Economic Reasoning What is Economics? Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political
More informationSupply and Demand: Theory (Part I)
Supply and Demand: Theory (Part I) Ch 3, Economics 9 th Ed, R.A. Arnold Market Ch. 2 discussed about production and trade. After production the producers (sellers) sell the goods to buyers in a market.
More informationDemand- how much of a product consumers are willing and able to buy at a given price during a given period.
Ch. 4 Demand Ch. 4.1 The Demand Curve (Learning Objective- explain the Law of Demand) In your world- What are the goods and services that you demand? What happens to your buying when the price goes up
More informationCopyright 2010 Pearson Education Canada
What are the effects of a high gas price on buying plans? You can see some of the biggest effects at car dealers lots, where SUVs remain unsold while sub-compacts sell in greater quantities. But how big
More informationAP Microeconomics Chapter 6 Outline
I. Introduction AP Microeconomics Chapter 6 A. Learning Objectives In this chapter students should learn: 1. What price elasticity of demand is and how it can be applied. 2. The usefulness of the total
More informationINTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION
ECO105 (F) / Page 1 of 12 Section A INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION Instructions: This section consists
More informationSHORT QUESTIONS AND ANSWERS FOR ECO402
SHORT QUESTIONS AND ANSWERS FOR ECO402 Question: How does opportunity cost relate to problem of scarcity? Answer: The problem of scarcity exists because of limited production. Thus, each society must make
More informationMicroeconomics: MIE1102
TEXT CHAPTERS TOPICS 1, 2 ECONOMICS, ECONOMIC SYSTEMS, MARKET ECONOMY 3 DEMAND AND SUPPLY. MARKET EQUILIBRIUM 4 ELASTICITY OF DEMAND AND SUPPLY 5 DEMAND & CONSUMER BEHAVIOR 6 PRODUCTION FUNCTION 7 COSTS
More informationSOLUTIONS TO TEXT PROBLEMS 6
SOLUTIONS TO TEXT PROBLEMS 6 Quick Quizzes 1. A price ceiling is a legal maximum on the price at which a good can be sold. Examples of price ceilings include rent control, price controls on gasoline in
More informationEcon Microeconomics Notes
Econ 120 - Microeconomics Notes Daniel Bramucci December 1, 2016 1 Section 1 - Thinking like an economist 1.1 Definitions Cost-Benefit Principle An action should be taken only when its benefit exceeds
More information+ What is Economics? societies use scarce resources to produce valuable commodities and distribute them among different people
ECONOMICS The word economy comes from a Greek word oikonomia for one who manages a household. is the study of how society manages its scarce resources. Traditionally land, labor, and capital resources
More informationAfter studying this chapter you will be able to
3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences
More informationGovernment Regulation
Government Regulation What do you think is the market price for renting an apartment in Plainfield? What happens to the quantity of demand and supply after the price change? List four outcomes that would
More information2. The producers of a product with an elastic demand will have a strong incentive to reduce the price of their product.
Learning activity 5 True/False answers 1. If the price elasticity of the demand for chocolates is greater than one, then the manufacturers of chocolates can increase their total revenue by raising the
More informationElasticity and Its Applications. Copyright 2004 South-Western
Elasticity and Its Applications 5 Copyright 2004 South-Western Copyright 2004 South-Western/Thomson Learning Elasticity... allows us to analyze supply and demand with greater precision. is a measure of
More informationA.P. Microeconomics. In Class Review #2
A.P. Microeconomics In Class Review #2 Pricing 1. Pricing system serves as a rationing device The market decides who gets g&s by which households are willing to pay the price for it!! Pricing a. Even when
More informationEconomics, so far. Straight line Why? Transferable resources anything that can grow wheat can grow barley
Economics, so far I. Opportunity Cost a. What it is: what is given up b. Our first assumption is that resources money, time, land, etc are LIMITED. c. THUS we make choices. And every choice has an opportunity
More informationEconomics: Introduction
Economics: Introduction Study notes for the Introduction To Economics (section 1) and introduction to Miceconomics (section 2) By Nils Österberg for nilsnotes On HL paper two there are usually three out
More informationHomework 2 Answer Key
Econ 226 Principles of Microeconomics Fall, 24 Dr. Kathryn Wilson Due Date: Tuesday, September 28 th Homework 2 Answer Key 1. When the of movie admissions increases from $7 to $8, the demanded falls from
More information1. T F The resources that are available to meet society s needs are scarce.
1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility
More information2. If there is a minimum wage that is set below the equilibrium wage in the labor market, there will be:
Economics 101 Problem Set 3 Due: September 20, 2018 by 5 PM To receive credit for this problem set, you must submit your answers on-line at the class webpage. Neither hard copies nor e-mails will be accepted.
More informationOpportunity Cost The next best alternative foregone when making a decision. If X>Y, choose X, otherwise EcMan is being irrational.
Econ 191 Part 1: Introduction to the Economic Approach Microeconomics how individual workers, consumers and firms act and interact in markets -an act is a choice (made under free will) -choice is subject
More informationPreview from Notesale.co.uk Page 6 of 89
Guns Butter 200 0 175 75 130 125 70 150 0 160 What it shows: the maximum combinations of two goods an economy can produce with its existing resources and technology; an economy can produce at points on
More informationDemand - the desire, ability, and willingness to buy a product.
Demand - the desire, ability, and willingness to buy a product. The Law of Demand states that the quantity demanded of a good will be greater at lower prices than will be demanded at higher prices. Thus
More informationAGENDA Thurs 8/27. Reflection/Practice Quiz, CH 1 & 2 HW packets. QOD #5: High Priced Athletes Law of Demand (Graph it!
Reflection/Practice Quiz, CH 1 & 2 HW packets QOD #5: High Priced Athletes Law of Demand (Graph it!) Demand Curves AGENDA Thurs 8/27 Diminishing Marginal Utility HW :Looking for Supply & Demand Part 1
More informationChapter 1 Review: What is Economics?
Chapter 1 Review: What is Economics? CHAPTER 1 Study Questions 1. Scarcity The condition where wants are greater than the resources available to satisfy those wants. 2. Wants Things that we desire. 3.
More informationChapter 4: Demand Section 3
Chapter 4: Demand Section 3 Objectives 1. Explain how to calculate elasticity of demand. 2. Identify factors that effect elasticity. 3. Explain how firms use elasticity and revenue to make decisions. Copyright
More informationAP Microeconomics Chapter 3 Outline
I. Learning Objectives In this chapter students should learn: II. Markets III. Demand A. What demand is and how it can change. B. What supply is and how it can change. C. How supply and demand interact
More informationChapter 4. Demand, Supply and Markets. These slides supplement the textbook, but should not replace reading the textbook
Chapter 4 Demand, Supply and Markets These slides supplement the textbook, but should not replace reading the textbook 1 What is a market? A group of buyers and sellers with the potential to trade 2 What
More informationEcon: CH 7 Test Review Demand & Supply
Econ: CH 7 Test Review Demand & Supply The Big Idea: 1. Scarcity is the basic economic problem that requires people to make choices about how to use limited resources 2. Buyers and sellers voluntarily
More informationChapter 3 Elasticity.notebook. February 03, Chapter 3: Competitive Dynamics and Government (Elasticity and Related Concepts)
Chapter 3: Competitive Dynamics and Government (Elasticity and Related Concepts) price elasticity of demand the responsiveness of a product's quantity demanded to a change in its price. Degree of Elasticity
More informationTo produce more beach balls, you must give up ever increasing quantities of ice cream cones.
Unit 01: Basic Concepts (Macro/Micro) Scarcity The Economic Problem: Unlimited wants, limited economic resources Factors of Production: -Land -Labor -Capital -Entrepreneurship Big 3 Questions: -What to
More informationReading Essentials and Study Guide
Lesson 3 Elasticity of Demand ESSENTIAL QUESTION What are the causes for a change in demand? Reading HELPDESK Academic Vocabulary technical related to a particular subject such as art, science, or trade
More informationChoose the one alternative that BEST completes the statement or answers the question.
CHAPTER 3 The Demand for Labor In addition to the multiple choice and quantitative problems listed here, you should answer review questions 1, 3, 5, and 7 and problems 1-4 at the end of chapter 3. Multiple-Choice
More informationIndividual & Market Demand and Supply
Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (3) Individual & Market Demand and Supply The tools of demand and supply can take us a far way in understanding both specific economic
More informationPrice = The Interaction of Supply and Demand WEDNESDAY, FEBRUARY 17 THURSDAY, FEBRUARY 18
Price = The Interaction of Supply and Demand WEDNESDAY, FEBRUARY 17 THURSDAY, FEBRUARY 18 Chapter 4: Section 1 Understanding Demand What Is Demand? Markets are where people come together to buy and sell
More informationCHAPTER 1. What Is Economics? 1.1 The Economic Problem 1.2 Economic Theory 1.3 Opportunity Cost and Choice CONTEMPORARY ECONOMICS: LESSON 1.
CHAPTER 1 What Is Economics? 1.1 The Economic Problem 1.2 Economic Theory 1.3 Opportunity Cost and Choice 1 CONTEMPORARY ECONOMICS: LESSON 1.1 Consider CHAPTER 1 What Is Economics? Why are characters in
More informationCHAPTER 1. A Look at Wants and Needs
CHAPTER 1 A Look at Wants and Needs Why It s Important Businesses satisfy people s basic needs all the way to their lavish wants. Competition and profit motivate these businesses to continually strive
More informationWhat is Economics? / Define Economics / Introduction to Economics
What is Economics? / Define Economics / Introduction to Economics Economics is a social science that studies how individuals, governments, firms, and nations make choices on allocating limited resources
More informationWeek 1 (Part 1) Introduction Econ 101
Week 1 (art 1) Introduction Econ 101 reliminary Concepts (Chapter 2 g 38-41 & 47-50) Economics is the study of how individuals and societies choose to use scarce resources that nature and previous generations
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MBA 640, Survey of Macroeconomics Fall 2006, Quiz #2 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The price elasticity of demand is defined
More informationCh. 7 outline. 5 principles that underlie consumer behavior
Ch. 7 outline The Fundamentals of Consumer Choice The focus of this chapter is on how consumers allocate (distribute) their income. Prices of goods, relative to one another, have an important role in how
More informationChapter 17: Labor Markets
Chapter 17: Labor Markets Econ 102: Introduction to Microeconomics 1 1.1 Goals of this class Goals of this class Learn how employment and wages are determined in equilibrium. Learn what can shift labor
More informationChapter 1- Introduction
Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and
More informationMcBride ECON Formative Quiz 4.1 and 4.2
Name: Class: _ Date: _ ID: A McBride ECON Formative Quiz 4.1 and 4.2 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which is an example of the law of
More informationIntroductory Microeconomics. Dr. Lisa Mohanty TUI University
Introductory Microeconomics Dr. Lisa Mohanty TUI University Supply and Demand Forces that make market economies function Determines the quantity of each good produced Demand and Supply in a competitive
More information