econ
Goal of the Buyer: Consumers make a transaction Zero/lowest price | Goal of the Seller: Producers make transaction Biggest/Infinite price |
What determines Price? Competition | What is the Regulator? Competition |
What is the Motivator? Profit | Who is your Econ daddy? (book) Adam Smith |
Who seeks the lowest price? Consumer/ buyers | Who seeks the highest price? Producer / sellers |
Who does a Buyer compete with? Other Buyers | Who does a seller compete with? Other Sellers |
Who is a Seller? Producers | Who is a Buyer? Consumers |
What is the Buyer's Reservation price? Higher price buyer is willing /able pay for product | What is a seller's Reservation Price? Lowest Price seller willing /able to Accept for product |
Law of Supply Price Quantity Supplied up and Price Quantity supplied down | Law of Demand Price Quantity Supplied down Price Quantity Supplied Up |
Relative Scarcity: - Relationship between S and D | Relative Price Based on individuals income measures how realativly scarce an item is to individual |
What factors affect Supply? WAGTIPS | What factors affect Demand? TIPSE |
Demand Represents: Relation with buyers | Supply Represents... Relation with sellers |
СПР -Competition -Information -Incentive -Property Rights | |
Equilibrium buyers who are able/willing to pay the price - get the goods services they desire | Allocative Efficiency The optimal point of Production |
When QS>QD, what do you have? Surplus | When QS<QD, what do you have? Shortage |
If Prises on the Demand Curve what happens? less demand | When QD=QS you have... Equilibrium |
Direction of Supply Curve: up | Direction of Demand Curve: down |
If P decreases on the Demand Curve, what happens? More Demand | WAGTIPS Weather Action of Gov Technology Input price Sellers numbers |
TIPSE - Taste and Prefrences - Income - Population change -substitutes in Componens - expectations of future $ | Invisible Hand Self - Interest / competition |