Tag: supply
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Conserving resources
Conserving resources versus using resources Factors The need for money The standard of living Opportunity to earn money because of global demand of products Comparative advantage Public expenditure versus Private expenditure Public expenditure The government does not exploit resources and maintains sustainability Private expenditure The private companies exploit the resources to earn maximum profit…
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Price Elasticity
Usefulness of price elasticity The government can use price elasticity to decide on which product, tax can be levied. If government puts tax on a product with inelastic demand the revenue will increase as the consumer will be prepared to but the product as higher price (cigarettes)
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Price elasticity of supply
Price elasticity of supply It is a measure in economics to show the responsiveness of the quantity supplied of a good or service to a change in its price. PED = % change in quantity demanded % change in price
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Price elasticity of demand
Price elasticity of demand It is a measure in economics to show the responsiveness of the quantity demanded of a good or service to a change in its price. PED = % change in quantity demanded % change in price
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Change in supply
Causes of changes in supply Change in input costs (labor/natural resources/etc.) Change in technology Change in number of supplies Change in taxation policies Disasters and calamities
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Change in demand
Causes of changes in demand Change in price of a compliment good Change in price for substitutes Change in income, for normal goods, a change will cause an increase in demand Change in the number of consumers Change in information/technology
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Equilibrium Price
Principle of equilibrium price The equilibrium price is the price where demand and supply are equal. Equilibrium is defined to the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves
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Labour-factor of production
Labour Manual and mental effort to produce or deliver goods and services People who are willing or able to work are known as labour work force. Examples: Clerks Computer technician level Economics Teacher