Elasticity
Define Elastic
the responsiveness of one economic variable to a change in another.
Define Production
The process of converting inputs into outputs.
Examples of Resources Cost going down
Profit increases
Supply Increases
Shifts Right
Determine Supply Elasticity
If firms can adjust to price, change increases to more elastic
What is a substitue/compliment good?
Goods that can be used in place of an original good
Define Elasticity
How responsive a goods change has
Define Supply
Amount of a product/service offered for sell
What if production goes up? What happens to Supply?
It goes up
What is Nuclear Power? Elastic or Inelastic?
Inelastic
What are Complement Goods
Goods that relate to one another
Define Inelastic
when the price goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged
Left Shift:
Decreases
What happens to Future price in future expectation?
The future price goes up
Are toys elastic or inelastic?
Elastic
Define Scarcity
Resource Limitation
Elastic Vs Inelastic Examples
Elastic - Soda Brands
Inelastic - Gasoline
Examples of shift causes
Cost of Input Resources (Things that make the product)
What happens to the current supply in future expectation?
It goes down
What happens to price in the Law of Supply?
The price goes up
Define Macroeconomics
branch of economics that studies the behavior and performance of an economy as a whole.
Define Unit Elastic
a situation where the percentage change in quantity demanded or supplied is equal to the percentage change in price
Right Shift:
Increases
What if production goes up? What happens to the shift?
It goes right
What if the slope to a graph is steep?
It is more Elastic
Define Market Ecomony and give examples
An economic system in which the production of goods and services is determined by supply and demand. The United States is an example of a market economy. It has a central bank, the Federal Reserve, that attempts to influence the overall direction of the economy.