Econ
What are some demand Factors?
# of buyers, Income Prices of other products consumer preferences consumer expectations
The problem with Scarcity
Exists because human wants cannot be satisfied with the limited time, money, and energy.
Price related products: when a price for a product similar to your goes up or down? this product is called a? BMW - Honda
Substitute
Which of the following is one of the three steps to smart choices: The choice is smart when measurable benefits are greater than measurable cost Be sure to count all benefits and costs, excluding implicit cost or externalities The choice is smart when benefits are greater than additional opportunity cost The choice is smart when total benefits are greater than total cost
The choice is smart when total benefits are greater then total cost
Microeconomics
analyzes the choices of individual economic units; macroeconomics analyzes the preformance of the overall economy
If two goods, X and Y, have a negative cross-elasticity of demand, then we know that they
are compliments
Positive statements
are falsifiable in principle by appeal to factual evidence
Price of related product: When the price of a product that can be used with your product goes up or down. this is a? ex. A kindle and Ebooks
compliment
. A leftward shift in the supply curve indicates
decrease in the quantity supplied at each price
In Law of demand when the price goes up the quantity demand goes?
down
When the percentage change in quantity demanded is less than the percentage change in price that brought it about, demand is said to be
inelastic
The circular flow diagram of economic life shows?
input markets in which house holds are sellers and businesses are buyers
The main implication of scarcity in economics is that people must
make choices
Price of related products: when related prices go up the curve shifts to the?
right
At any disequilibrium price, whether controlled or not, the quantity actually exchanged is determined by
the lesser of quantity demanded and quantity supplied