Elasticity et al
food, prescription drugs, water
inelastic supplies
consumers willingness to purchase items
demand
the time you give up to play video games to study for your economics test
consumers tastes, income, market size, price of related goods
determines demand
when the means to fulfill ends are limited and costly.
scarcity
if a price is an "extra" and not a necessity it is
elastic
when looking at a demand curve, a shift to the left means
decrease
Someone gives up going to see a movie to study for a test in order to get a good grade. What is the opportunity costs?
the cost of the movie and the enjoyment of seeing it.
a condition or state in which economic forces are balanced
equilibrium
the satisfaction one gets from reading a book
utility
the degree to which individuals change demand in response to price
elasticity
consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service which increases every aspect of n economy
demand economy
Jill decides to take the bus to work instead of driving. It takes her 60 minutes to get there on the bus and driving would have been 40. What is the opportunity costs
opportunity cost is 20 minutes.
You produce mittens, a rival knitter moves in and starts to sell his mittens at half the price. What happens to your demand curve
decreases
the social science that studies production, distribution and consumption
economics
quantity and quality of material goods and services available to a given population
Standard of Living
believe that utility is measurable, and the customer can express his satisfaction can be expressed in numbers
cardinal utility
two factors that act as an "Invisible hand" that regulates the market
self-interest
competition
three factors that cause a shift in demand
“P.O.I.N.T.”
P rice of other goods (substitute or complementary)
O utlook (consumer expectation of the future)
I ncome (normal goods versus inferior goods)
N umber of potential customers (pop.of market)
T aste (fads or trends)
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
subsidy
expenditure on or consumption of luxuries on a lavish scale in an attempt to enhance one's prestige.
conspicuous consumption
based on the fact that the utility of a commodity cannot be measured in absolute quantity, but however, it will be possible for a consumer to tell subjectively whether the commodity derives more or less …
ordinal utility
the abundance of valuable financial assets or physical possessions
wealth
three factors that would move a supply curve
“P.I.G. T.O.E.S” (yes, I know, a little unusual)
P roductivity (workers, machines, and/or assembly)
I nputs (Change in the price of materials needed to make the good)
G overnment Actions (Subsidies, Taxes, and Regulations)
T echnology (Improvements in machines and production)
O utputs (Price changes in other products)
E xpectations (outlook of the future)
describes the unintended social benefits of an individual's self-interested actions
invisible hand