ECON Video notes

Optimization

Choosing the best feasible option given the situation and available information.

Economic Agent

Any person or group of people making decisions or choices.

Total Value Method

Calculates the overall benefits of each option minus the costs to determine the best choice.

Marginal Analysis

Evaluates the change in total value when switching from one option to another to find the best choice.

Ceteris Paribus

A Latin phrase meaning 'all other things being equal' used in economics to focus on the relationship between two specific variables.

Supply and Demand Analysis

The study of how market supply and consumer demand determine prices and quantities of goods.

Demand Schedule

A table that shows the quantity of a good that buyers are willing and able to purchase at different prices.

Homogeneous Product

A product that is identical across different suppliers, making them substitutable.

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.

Market Demand Curve

A graph showing the total quantity of a good demanded by all consumers at various prices.

Inverse Relationship

A relationship where as one variable increases, the other decreases, evident in the demand curve.

Demand Curve Shift

A change in the demand curve indicating a change in demand, caused by factors other than the price of the good.

Market Equilibrium

The price point where the quantity of a good demanded equals the quantity supplied.

Opportunity Cost

The cost of choosing one option over another, measured by the value of the next best alternative.

Marginal Benefit

The additional benefit received from consuming one more unit of a good.

Elastic Demand

When the quantity demanded of a good changes significantly with price variation.

Inelastic Demand

When the quantity demanded of a good changes little with price variation.

Price Expectation

Consumers' expectations regarding future prices that can influence current demand.

Commuting Cost

The total cost associated with traveling to work or school, including time and transportation expenses.

Scarcity

Limited availability of resources relative to the unlimited wants of consumers, leading to choices.