ECON1 Markets In Action
- Created by: Jamie Roberts
- Created on: 06-01-13 18:52
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- Econ 1- Markets In Action
- The Basic Economic Problem
- Scarce resources but unlimited wants
- Choice
- Opportunity Cost
- Factors Of Production
- Land
- Labour
- Enterprise
- Capital
- Specialisation
- Divison of Labour
- Adam Smith
- Productivity
- Opportunity Cost
- The next best alternative foregone when a choice is made
- PPF
- A curve which shows combinations of a good or service
- Opportunity Cost
- Using resources efficiently
- Demand
- The quantity of a good that consumers are willing and able to buy at the given price level
- Factors affecting demand
- income
- Fashion/Trends
- Price of subsitutes
- Price of complements
- Population
- Consumer Surplus: difference between price consumers are willing to pay and the price they actually pay.
- Elasticities
- PED
- % change in Q.D/% change in price
- <-1 Elastic
- < -1 Inelastic
- YED
- Change in income
- Normal Good= +
- Inferior Good= -
- >1 Elastic
- <1 Inelastic
- XPED
- Responsiveness of product x with product y
- % change in Q.D good X/ % change in price of good Y
- above 0 is a close subsitute
- below 0 is a complement
- The further the number from 0 the closer the relationship
- PES
- Quantity supplied with respect to a change in price
- >1 elastic
- <1 inelastic
- PED
- Supply
- The quantity the producer is willing to supply at the given price level
- Factors affecting
- Subsidy
- Indirect Tax
- Future Price
- Raw Materials
- Producer Surplus
- Economies Of Scale
- Purchasing
- Buying in bulk
- Marketing
- Technological
- Financial
- Managerial
- Dis-economies of scale
- Purchasing
- The Basic Economic Problem
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