ECONOMICS (OTHERS)

Prezil Ong
Flashcards by Prezil Ong, updated more than 1 year ago
Prezil Ong
Created by Prezil Ong almost 6 years ago
8
0

Description

ECONOMICS

Resource summary

Question Answer
Formula For Marginal Utility TU2-TU1 MU=___________ C2-C1
Ceteris Paribus All other things be taken equal
Shift left / right
Movement Up / Down
Factors that Shift Demand T- Taste and Preferences I- Income N- Number of consumers D- Demographics E- Expectations of consumers R- Related goods price
Tastes and Preferences Seasons, Endorsement,
Income When your income increases and you consume MORE of a good, the good is called normal. It is called inferior when the consumer increases income and demand for this good falls
Number of Consumers Population growth or a shift in age structure can also affect the demand for goods
Demographics (related to Tastes and Preferences) Age, Gender, Ethnicity, Education
Expectations of Consumers Demand of a product is often influenced by consumer's expectations of what will happen in the future News, Rumors
Related Goods Price Demand shifts can be the result of the changing prices of related goods, which may be either substitutes or complements
Factors that Change Supply S- size of the market (# of sellers) T- Technology O- Other prices of related goods R- Resource prices E- Expectations of producers S- Subsidies, taxes and reg. of the government
Formula for Price Elasticity of Supply QSUPPLY(NEW) - QSUPPLY(OLD) / QS(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD)
Formula for Price Elasticity of Demand QD(NEW) - QD(OLD) / QD(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD)
Demand vs. Quantity Demanded Demand- Demand curve Qty. Demanded- one particular point on curves
Example Situation of: Tastes and Preferences A famous singer endorses a product for a particular brand of clothing. The demand for clothes from that particular brand of clothing would increase
Example Situation of: Income Filipinos from Cebu who are working in Manila experience an increase in income and now uses airplane as a mode of transportation from Manila to Cebu. The demand for Ro-ro or ferry tickets will decrease.
Example Situation of: Number of Consumers An increased number of fishermen living in Manila increased. The demand for fishing supplies will increase
Example Situation of: Demographics There is an increase in the rate of the number of youths in a city. The demand for facial wash will increase in that city
Example Situation of: Size of Market The number of suppliers for Pork meat increased in a city. The supply for Pork meat will increase in that city
Example Situation of: Technology HP factory in China has experienced a technical difficulty in producing printers. The supply of printers will decrease in China.
Example Situation of: Other prices of Related Goods The price of Hot Dogs increased. The supply of hot dog buns will increase
Example Situation of: Resource Prices Hershey's increased their cost of production of chocolate bars due to an increase in the wages of their employees. The supply of chocolate bars will decrease.
Example Situation of: Expectations of Producers E-learning is beginning to be adapted by more schools in Manila. Producers of tablets or laptops will expect to increase their supply.
Example Situation of: Subsidies, tax and Reg. of government The government has seen the need of more First Aid kits in a country and gave Band-Aid (c) a gov't subsidy. The supply of First-Aid Kits will increase in that country
Apply Economics in your Daily Life Buying Goods which give the highest level of satisfaction for price. Budget Constraints- we have unlimited wants but limited income
Why is there No Free Parking? The demand for parking will increase and cause congestion and people won't commute anymore and env will be affected
Show full summary Hide full summary

Similar

Econ December exams prep
ji57ch22
Using GoConqr to study Economics
Sarah Egan
PMP Formulas
Krunk!
Economics
Emily Fenton
Economics - unit 1
Amardeep Kumar
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll
Using GoConqr to teach Economics
Sarah Egan
Functions of Money
hannahcollins030
Comparative advantage
jamesofili
GCSE - Introduction to Economics
James Dodd
Market & Technology Dynamics
Tris Stindt