We Supply it
You Demand it
You Demand it
The idea that as price goes up, quantity demanded will decrease
The Law of Demand
What is given up as a result of making choices
Opportunity Cost
Quantity and Price
The fundamental problem of economics
Scarcity
Comparative advantage is not to be confused with this situation, where I can flat out produce more of something
Absolute Advantage
A movement ALONG the supply curve is a change in this.
Quantity Supplied
When one person can produce something with a lower opportunity cost
Comparative Advantage
One of these need to change in order to change the equilibrium
Supply or Demand
Name the four categories of resources
Land, Labor, Capital, and Entrepreneurship
Both parties will do better with this type of trade
mutually beneficial
MERIT and TRICE are _____ of demand and supply respectively
Determinants
If Nolan can make 12 gallons of ice cream of 3 jars of peanut butter, this is his opportunity cost for making 1 gallon of ice cream.
1/4 a jar of peanut butter
If Supply shifts to the right, this is how price and quantity will change
Price decreases, quantity increases
Opportunity cost demonstrates this concept of dealing with scarcity
Trade Off
If I have the comparative advantage in the production of a good, I will _______ and trade
Specialize
Name all 5 of the MERITs
Market Size, Expectations, Related Prices, Income, and Taste
Draw a graph on the board that demonstrates increasing opportunity costs
Drawing
If supply increases, and Demand increase, this will definitely increase
Quantity
This means that the amount of one good you give up is always the same for every additional unit of another good you make
Constant Opportunity Cost
Without a change in available resources, mutually beneficial trade is the only way to achieve a point outside of this
PPC
Name all 5 TRICEs
Technology, Related Prices, Input Prices, Competition, Expectations
An important consideration is the opportunity cost of product goods. The opportunity cost is measured in this type of good which could change the available resources for the future.
Capital Goods
If a nations income decreases while simultaneously Technology is improving, then quantity will...
Be indeterminate
What inequality must be true in order for their to be a shortage
Qs < Qd or Qd > Qs or P < Pe
I can make 20 cars or 100 apples, you can make 30 cars or 90 apples. Name a mutually beneficial term of trade
Between a ratio of 1:3 and 1:5 cars for apples