Econ 1

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  • Econ 1
    • PPF
      • unemployment if within PPF
      • need growth if outside the PPF
      • O/C - shows the costof the next best foregone
      • productively efficient- another unit of one cant be produced without giving up another
    • Price mechanism
      • incentive- price good rises, quantity supplied rises
      • helps allocate resources efficiently
      • signalling- prices adjust to show where resources are needed
      • rationing- prices reserve resources with there's excess demand
    • YED
  • PED
    • prop. change in Qdx as a result of change in Px
    • inelastic- addictive PED=0
    • %/\Qdx.   %/\Px
    • elastic- demand collapses with Px change. PED=infintiy
    • Econ 1
      • PPF
        • unemployment if within PPF
        • need growth if outside the PPF
        • O/C - shows the costof the next best foregone
        • productively efficient- another unit of one cant be produced without giving up another
      • Price mechanism
        • incentive- price good rises, quantity supplied rises
        • helps allocate resources efficiently
        • signalling- prices adjust to show where resources are needed
        • rationing- prices reserve resources with there's excess demand
      • YED
  • %/\Qdx.    %/\Y
  • prop. change in Qdx as result of prop. change in Y
  • YED>1- relatively elastic, luxuries
  • 1>YED>0- rel. inelastic, necessities
  • Untitled

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