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law of supply

As a price increases the quantity of the good provided increases, as the price of a good decreases, the number provided decreases.


A value that will purchase a finite quantity, weight, or other measure of a good or service

equilibrium quantity

The quantity supplied and the quantity demanded at the equilibrium price;quantity bought nd sold @ equilibrium price

opportunity cost

cost of nxt best alternative

economic interdependence

econ activites in 1 part of the country or world affect wut happens elsewhere


a way of expressing a need


risk-taking indiv in search of profits;1 of 4 factors of production

capital good

tool,equip,or other manufactured good used to produce other goods nd sevices;a factor of production


form of business organisation recognised by law as separate legal entity w/ all rights nd responsbilities of an indiv,including right to buy nd sell prop,enter into legal contracts,sue,nd be sued


work/labour performed for some1;econ product tht includes haircuts,home repairs,forms of entertainment

financial capital

$ used to buy tools and equip used in production

partnerships owned nd operated by 2+ ppl who share profits nd have unltd liability for debts nd obligations of the firm


tangible econ prod thts useful,relatively scarce,transderable to others;used to satisfy wants nd need


physiological/boilogical requirement for maintaining life.this drives econ activity


econ sys in which private citz own nd use factors of production in order to generate profits


combination of 2+ businesses enterprises to form single firm


factors of production are...?

command econ

gvt dictates how much u make,etc;the communists

market econ

wut the us has;competitive,stressful

traditional econ

oldest person in charge;very little growth

law of demand

wen price of prod goes up,demand for prod goes down


thights tht go 2geth

demand dec

wut happens if $ of complements inc?

consumer income

1.thing causes change in demand?

consumer taste

2.thing casues change in demand? (popularity of prod)

# of consumers

3.thing causes change in demand?

consumer expectations

4.things causes change in demand?

price of complements

5.things causes change in demand?

price of substitutes

6.thing causes change in demand?

cost of influence

1.wut causes change in supply?


2.wut causes change in supply


3.wut causes change in supply

# of sellers

4.wut causes change in supply


5.wut causes change in supply


6.wut causes change in supply


gvt payment to an indiv,business,or other grp to encourage or protect a certain type of econ activity


person who uses goods nd services to satisfy wands nd needs

reason to study econ

cuz scarcity affects almost every decision ppl make.its the study of how ppl try to satify wut appears to be seemingly unltd nd compelling wants thru careful use of relatively scarce resources

production possibilities graph

represents various combinations of goods nd/or services an econ can produce wen all productive resources are fully employed


the main econ prob.its a cond tht results from socierty not having enough resources to produce all things ppl would like to have

supply schedule

listing of various quantities of particular prod supplied @ all possible prices in the market

supply curve

shows various quantities supplied @ each nd every price tht might prevail in the market

change in quantity supplied

amt tht producers bring to market @ any given,it shows as mvmt along supply curve,just like the case of can either inc or dec,depending on whether more or less of prod is offered

market equilibrium

sit in which prices are relatively stable,nd quantity of goods/services supplied is eq to quantity demanded

equilibrium price

price tht clears the market by leaving neither a surplus nor a shortage @ end of trading period

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