Economics
What is the purpose of economics?
Understand how business are legally structured and hoe economic principles shape decisions
what is an Economic System?
An economic system is the way a society organizes the production,
distribution, and consumption of goods and services.
Why do Tastes or Preferences matter for the shift and demand?
Changes in tastes and preferences shift the curve, indicating a decrease or increase
in the overall desire for a product at all prices.
Why do economics matter?
Economics studies how people make choices with limited resources (time,
money, goods).
How many different types of economy are there?
Why do Number of Consumers matter for the shift of demand?
The number of buyers shifts the entire demand curve. An increase in consumers
leads to a greater quantity demanded at every price, shifting the curve to the right.
What is supply and demand?
Supply and demand is a fundamental economic principle that explains how
prices are determined in a market economy.
What are the 4 different types of Economy systems?
Traditional
Command
Market
Mixed
What are the 5 shifters of supply?
Input prices
Technology
Government actions
Number of sellers
Expectations
What is an example of demand?
If a new iPhone drops from $1,000 to $800, more people might buy it. If it rises to $1,500, fewer will.
What are the "isms and what do they do"?
Capitalism, Socialism & Communism
What do Equilibrium, Surplus & Scarcity do?
Equilibrium - Demand Equals Supply
Surplus - Demand is less than Supply
Scarcity - Demand is more than Supply
What is an example of supply?
If coffee shops can sell lattes at $7 instead of $4, they’ll brew more. At $2, they might cut back.
What are the 5 shifters of demand?
Tastes/preferences
Number of consumers
Related goods prices
Income
Expectations
Why aren’t Markets Always at Equilibrium?
Markets are not always at equilibrium because of all the internal and
external factors that cause constant shifts in supply and demand.