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Law of Supply
as prices rise, so does supply. there is direct relationship between price and quantity supplied.
Law of Demand
as price falls, quantity demanded rises other things being equal. This describes an inverse relationship between price and quantity demanded.
Changes in Quantity Demand (Movement)
a movement can only happen when a price change occurs.
Changes in Quantity Demand (Shift)
a change in a non price factor causes a shift.
a demand shift occurs when there is a change in a non price factor.
Supply Movement
a movement along the line that is caused by a price shift.
SUPPLY Shift (GOOD=RIGHT)
if the company is able to produce goods, the shift will be to the right which is increasing total quantity produced.
SUPPLY Shift (BAD=LEFT)
if there is an event that reduces the company ability to produce goods, shift will be to the left, decreasing total quantity produced.
(D.D) change in income
when your income goes up you spend more stuff and vis versa.
(D.D) complementary
items that go well together (ketchup and fries)
(D.D) substitute
goods that can be used to replace another good (coke and pepsi)
(D.D) change in taste and preference
as consumer tastes change so does demand.
(D.D) change in expectations
an expected change in the future price will change in demand today.
(D.D) change in the # of consumers
changes of the # of consumers can happen for a variety of reasons for example death, birth, etc.
(S.D) # of producers
if there are more producers, then total production will increase at all levels.
(S.D) resource price
are the inputs for business. if there is a change in the price of a resource it causes a change in the cost to produce goods,
(S.D) state of tech
tech is used to increase productivity and output. (computers robots, machinery)
(S.D) prices of related goods
related goods for producers are tings that the company could also make instead.
(S.D) nature
change in nature (think weather and natural events)
(S.D) producer expectation
if producers expect prices in the future, it changes their behaviour today.
Slope Demand
is generally considered to slope downward at higher prices consumers buy less.
Slope Supply
is generally considered to slope upward as the prices rise meaning suppliers are willing to produce more.
Surplus
when the price is lesser than the equilibrium price then the quantity supplier is greater than the quantity demanded.
Shortage
when the price is lesser than the equilibrium price then the quantity demanded is greater than the quantity supplied.
Equilibrium
refers to a situation in which the price has reached the level where quantity supplied equals quantity demand.
Unemployment
anyone over the age 16 not in school or who don’t have a job but are actively seeking work.
Seasonal
is unemployment due to seasonal changes in employment or labour supply (wonderland)
Frictional
is a brief period of unemployment caused by moving between jobs or into labour market ex. college or university graduates.
Structural
caused by mis match between the skills or location of job seekers and the requirement or location of available jobs.
Cylical
caused by a lack of job opening a poor level of aggregate demand. occurs during recessions and company cut back workers.
Economic Inequality
an unequal distribution of income and opportunity between different groups of society.
Unemployment Equation
Progressive income tax
the more money you make the more taxes you pay
Regressive taxes
is applied to all citizens no matter what you income is, you still have to pay.
Welfare State
the social safety net is set of government policies to support struggling citizens through taxation and spending.
Note 
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