GGR345H5 Chapter Notes -Free Trade, Demand Curve, Economic Globalization
Document Summary
If the supply goes up then price will go down. Market based approaches are based on the premise that most equitable and efficient way of distributing resources (such as food, land, housing, services, and labor) is the market. Tgis means that the price of a good, or the wage levels of a worker, will be determined by the relationship between supply and demand. Shifts in the supply curve may occur, for example, because of technological changes or fluctuations in input costs. Shifts in the demand curve may occur if income goes up (family may now be more willing to pay for certain things) David ricardo who developed the concept of comparative advantage". Calls for reduced govt. intervention in economic affairs, free trade, and a division of labor. Supply is number of workers wanting the job. The wage is where the two curve cross.
