A place were trading takes place where theres always a buyer and a seller
An economy is formed by different markets and supported by the country or a particular region
The economic decisions one makes and the effects of it on the individual
Split into 3 categories: Natural, man made and human.
Man made resources
Products made by humans
Specialists e.g. Doctors
The amount is finit, not a lot
The development of the economy
The level of demand that represents a real intention to purchase by people with the means to pay.
Something that is wanted but cannot be afforded
With other conditions remaining the same.
Any goods for which demand increases when the income increases and falls when the income decreases but price remains constant
An inferior good is the opposite of a normal good, which experiences an increase in demand along with increase in the income level.
One kind of good (or service) is said to be substitute good for another kind of insofar as the two kinds of good can be consumed or used inlace of one another in at least the same of their possible uses.
A complimentary good, in contrast to a substitute good, is a good with a negative cross elasticity of demand.
used to assign the available resources in an economic way. Its part of resources management.
When Demand is greater than the supply
When the supply is greater than the demand (surplus)
Where the supple and Demand equals out
A price that would not last long
Costs that don't vary with the output
Very directly with output (e.ge wages and raw materials) TC = FC+VC
Total costs decided by the output
The amount of money received from selling its output TR = Price*Quantity
The average amount of money received from selling one unit of output ( AR = TR/output)