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16 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Determinants that change demand |
Consumer preferences Change in income Change in substitution Change of compliments Future expectations |
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Normal good |
Income goes up demand goes down |
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Inferior goods |
Income goes up demand goes down |
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Supply shifts |
When there is a change in cost production |
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Scarcity |
Necessitates choice Scarcity means there is a limited amount |
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Upward sloping |
Positive relationship |
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Downward slope |
Inverse realtionship |
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Questions of efficiency |
What How Where For whom |
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Economics |
Study oif allocatyon of scares goods in an environment of ulimitied wants |
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Efficiency |
Lowest opportunity cost |
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Resources (input) |
Anything used to produce a good or a service |
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Law of demand |
The inverse relationship between the prices of a good servise or resources and the quality that will be demand of it |
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Market |
Facilitates the exchange between buyers |
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Allocation |
Based on willingness and abiltity |
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Law of supply |
The positive relationship between the prices of a good service or resources and the quality that will be supplied of it |
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Equilibrium |
Mutual gain from voluntary exchange |
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