1. Law and Demand- The quantity of a good that consumers are willing and able to buy per
period relates inversely, or negatively, to the price, other things constant. This means that
consumers are willing to pay a certain amoun
6 September 2013
Exercise 1 - What is Economics?
1. The fundamental economic issue is scarcity. If items are scarce, that means there is a
need for it. Some scarce items cannot be created, such as water or oil. These thing
1/4/13- Exercise #4
Determinates of Demand for EV
1. If you won a million dollars, the demand of an EV car goes up because you can afford the
hybrid cars and all that comes with it.
2. The demand for a better environment increases the curve for
1. Public Goods are goods that, once produced is available for all to consume, regardless
of who pays and who doesnt; such a good is non-rival and nonexclusive, such as a
safer community. Public goods are available to all and ca
1. Elastic Demand: A change in price has a relatively large effect on quantity demanded; the
percentage change in quantity demanded exceeds the percentage change in price; the
resulting price elasticity has an absolute value e
1. Four Economic Decision Makers- The household, their demand for goods and
services determines what gets produced; The Firm, the suppliers of what used to be
the household responsibilities, such as making their own clothes and
What causes the supply curve to shift?
Change in supply
S: Number of Sellers as the number of sellers increases, shift right in the supply curve.
I: Input prices: As input prices increase, shift left in supply curve.
T: Technology changes (indus