ECON Notes Week 2

ECON Notes Week 2 - ECON Notes Week 2 1/22/2008 3:24:00 PM...

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ECON Notes Week 2 22/01/2008 18:24:00 Constant Opportunity Cost PPF- Slope is constant; straight line Increasing Opportunity Cost PPF-  slope is curved The Law of diminishing return- anything that you use more and more of it, the  productivity declines with each unit used more Absolute advantage-compares goods in terms of costs Comparative advantage- compares goods in terms of opportunity costs DEMAND Demand- referring to actual demand line Shifts left- demand decreased Shifts right- demand increased Quantity Demanded-  movement along the same demand line from one point to  another point Demand shifters: o Income Normal Goods- when income increases we buy more of them Inferior Goods- when income decreases we buy less of them o Price of related goods Substitutes Compliments
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22/01/2008 18:24:00 Supply
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ECON Notes Week 2 - ECON Notes Week 2 1/22/2008 3:24:00 PM...

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