Economics

Graphs
They form a basic tool for analyzing ec.analyzis
Slope-it is used to tell us how much one variable(Y) changes in relationship to the change of another variable(X)
Economy- is the mechanism through which the use of F.O.P is organized to produce g&s to satisfy the desires of people.

Economics
The study of how human beings make choices to use scarce resources to satisfy unlimited wants
Idea of scarcity-in order to satisfy our needs we:m.decisions
Opportunity cost-when you make a decision you give an opp.
Micro ec-looks at the economy by concentrating on choices made by individuals such as consumers,businessmen...
Macro ec-looks at the eco. from a higher point of view by considering the performance of the eco.&measuring its annual production,its capacity to create jobs.


Positive an-looks at the changes caused by ec.policies and tries to determine who gains&who looses as a consequence.
Normative an-makes recommend. on what should be done.
P.p.f-shows max. amounts of production that can be obtained by an eco.,given the technical knowledge&resources available
Market-place where sb who has st to sell&sb who wants to buy sth meet&the price is determined according to demand&supply
Demand-relationship between the price of item&quan demand



Factors aff.dem:price,customer's income,prices of alt.items, qual of good,expectation ,tastes or fashion preferences
Law of demand-other things being equal,the lower the price of a good,the grater the quantity of that good the buyers are willing&able to buy for a period of time
Changes-no price:new product,quality-advert,income,wealth
Supply-the quantity of a good or service sellers are willing sell in a market. factors:price,demand,competition,expect,
Law of supply-other things being equal, the higher price of g&s,the grater the quantity of that g&s sellers are willing&able to produce

Fact-no price
Demand,price of inputs,competition
Demand for a good can also be influenced by a change in the price of its complementary.Complements are goods which enhance the consumer satisfaction when used with other goods.
A change in demand-change in the relationship between the price of a good and the quantity demanded.