Scarcity and Opportunity Cost
Factors of Production
What is Land, Capital, Labor, & Entrepreneurship?
The desire, ability, & willingness to buy a good or service
What is demand?
The quantity of goods or services that producers are willing and able to sell at a different price
What is Supply?
The point where quantity demanded equals supplied
What is Equilibrium?
The difference between what consumers are willing to pay and what they are actually paying
What is Consumer Surplus?
Giving up one thing to get something else
What is a trade-off?
As the price of a good or service increases, the quantity demanded decrease & vice versa
What is the law of demand?
As prices rise, quantity supplies rises; as prices fall, quantity supplied falls
What is Law of Supply?
Quantity supplied exceeds quantity demanded
What is Surplus?
What is Producer Surplus?
The limited availability of resources compared to the unlimited wants and needs of people
What is scarcity?
Replace each other ; Used together
What is substitutes and complements ?
Subsidies/Taxes, Price of related goods, Input costs, Technology, Expectations
What are factors that shift supply (SPITE)?
Quantity demanded exceeds quantity supplied
What s Shortage?
few firms, similar or different product
What is Oligopoly?
The value of the next best alternative that is forgone when a choice is made
What is opportunity cost ?
(TRIBE) Tastes, related goods, income, buyers, & expectations
What is factors that shift demand?
Entire supply curve shifts due to factors like input costs or technology
What is changes in supply?
Why choices are necessary
What is not having enough resources?
The whole demand curve shifts due to factors like income or tastes change
Movement along the curve due to price changes
What is Change in Quantity?