BUS 200 Lecture Notes - Lecture 2: Gross Domestic Product, Aggregate Demand, Demand Curve
Document Summary
Demand: the willingness and ability for a consumer to buy a product. Law of demand: the law of demand states a consumer is more willing to buy a product as price decreases. Law of supply: as prices increase businesses produce more supply as there is potential to make profit. Market equilibrium: when supply curve and demand curve meet to make a market equilibrium (when the quantity of demand is equal to the quantity of supply) Product quality was similar to walmart but prices were higher. Business does not have control outside of boundaries. The economic environment - conditions of the economic system in which an organization operates. Aggregate output - measure of economic growth / total quantity of goods and services produced by an economic system during a given period. Standard of living- total quantity and quality of goods and services that a country"s citizens can purchase with their currency.