________, advertising, pop star appeal, age, and peers can help affect the consumers preferences.
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Factor prices
________ increase → cost of production increases → more expensive to produce goods and services → producers have to cut down on production.
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Enterprise management
________- what it takes to run a business properly and manage everyone.
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Demand
________ is defined as the amount of goods and services consumers are willing and able to buy in a given period of time at a given price, ceteris paribus.
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Relative scarcity
________- relationship between wants and resources.
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Equilibrium
________- there point where there is no tendency for the leves of income and output to change /Y= O= E.
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sense of security
A market must remain stable, which allows the buyers to develop a(n) ________ in their expenditure and spending.
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perfect spot
The ________ for supply and demand- where the demand and supply is equal.
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opportunity cost
The ________ is the sacrifice you make when you spend money in one manner but another.
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consumer
A(n) ________ can not buy something if the prices fluctuate.
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ceteris
Supply of a good refers to the amount of a good a producer is willing and able to sell in a given period of time at a given price, ________ paribus.
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Qe
________ or Pe- equilibrium quantity, equilibrium price combine to make market equilibrium.
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Leakages
________ and injections- money leaving and entering.
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Humans
________ make decisions based on the facts, and that helps them make a reasonable decision.
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Supply
________ can easily be plotted on graphs on which one axis has ________ and the other has cost- this is called a(n) ________ curve.
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general public
The amount of goods and services that are able to be purchased by the ________.
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Capital
________- human capital, people that can do things which makes themselves a wealth.
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Circular flow of income
________- the flow of money through an economy.
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sector model
Money entering firms from investments is an injection as it is coming back into the original 2 ________.
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non price factors
When ________ affect supply, the curve may move right or left depending on the conditions.
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Financial sector
________- savings, investments, banks.
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Land natural
________- does it require land, natural effects, etc.
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Market equilibrium
________ refers to the state of a market that has no tendency to change.
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Demand
________- the quantity of a good or service that people are willing and able to purchase for a given price in a given time period.
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inflation
2-3% rate normally
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spending power of money decreases with inflation, but the costs increase
thats why banks need to use interest rates, employers raises, etc
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economics
creates a market to allocates scarce resources
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relative scarcity
relationship between wants and resources
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__scarcity/relative scarcit__y
there is not enough of what we want, so the price goes up
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land / natural
does it require land, natural effects, etc
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labour
who is going to work for you and how much is it going to cost
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capital
human capital, people that can do things which makes themselves a wealth
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enterprise/management
what it takes to run a business properly and manage everyone
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demand
the quantity of a good or service that people are willing and able to purchase for a given price in a given time period
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law of demand
as the price decreases, the demand usually increases
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normal goods
as income rises, the demand for that product or good will also rise
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inferior goods
as the demand for the good decreases and the income increases, the substitutes or replacements for that product will become more popular
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substitutes
for example, the price of chicken lowers, the demand for beef lowers too
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complementary goods
e.g
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tastes
the populations preferences may change
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circular flow of income
the flow of money through an economy
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equilibrium
there point where there is no tendency for the leves of income and output to change / Y = O = E
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financial sector
savings, investments, banks
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leakages and injections
money leaving and entering
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new injections from firms
exports
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ceteris paribus
all things remain constant
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a complement is a product that must be used at the same time wiht a different goods to satisfy the human want
for example, coffee and sugar, toothpaste and toothbrush
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revenue
costs = profit
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supply can easily be plotted on graphs on which one axis has supply and the other has cost
this is called a supply curve
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demand curve
the demand that was plotted on a graph
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equilibrium
income = output = expenditure
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Qe or Pe
equilibrium quantity, equilibrium price combine to make market equilibrium
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equilibrium refers to a position of balance
it is a position from which there is no inherent tendency to move away from
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