Econ 1
- Created by: OpenshawR09
- Created on: 04-05-15 11:31
View mindmap
- 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
- PPF
- 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
- PPF
- %/\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
Comments
No comments have yet been made