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Chapter 3 - Economics Microeconomics ,,families,and...

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Economics Analysis of the choices people and governments make in allocating resources Microeconomics The study of small economic units, such as individual consumers, families, and  businesses Supply:  Amount of goods and services for sale at different prices Low supply of gas=higher prices Demand:  Willingness and ability of consumers to purchase goods and services at  different prices 10 people want to buy your house Factors Driving Demand Demand curve - shows the amount of a product buyers will purchase at different prices Driven by variety of factors like competition, price, larger economic events, and  consumer preferences Supply Curve Supply curve - shows the relationship between different prices and the quantities that  sellers will offer for sale, regardless of demand How Supply and Demand Interact Supply and demand curves meet at the  equilibrium price Buyers and sellers make choices that restore the equilibrium
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Macroeconomics Issues For The Entire Society Political, social, and legal environments differ in every country Economies generally classified in one of three categories: Private enterprise system: capitalism or market economy Planned economies: socialism, communism Mixed economies (combinations of the two) Capitalism The Private Enterprise System and Competition
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