economics
what are the six economic goals
equity, freedom, stability, security, efficiency, growth
what are command values?
EQUITY, EFFICIENCY, freedom
Mixed values
SECURITY, STABILITY, GROWTH, freedom
Market values
FREEDOM, GROWTH
what is supply?
supply is the ammount of goods or services available
what is demand?
the number of people who want the goods or services and how much they want
factors affecting demand:
- price
- income of customers
- demand for substitute commodities
- whether people like the commodity
factors affecting supply
- cost of making goods
- price of commodity
- supply of alternate goods (costco = everything +food court)
- production of one good affects supply of another
- unexpected events
what is an equilibrium
when supply and demand are equal. both sellers and consumers are happy with the price.
what is a disequalibrium?
when demand or supply changes and there is now an excess of demand or supply.
This results in a demand shift/supply shift and therefore a change in price.