ECO100Y5 Lecture Notes - Lecture 5: Economic Equilibrium, Demand Curve, Tax Incidence
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ECO100Y5 Full Course Notes
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Document Summary
Economics use scarce to satisfy unlimited wants. Scarce no problem if everything is plentiful. Unlimited no problem if we don"t want anything. Opportunity cost the value of the next best alternative (slope of budget line) Microeconomics consumers (always want more), firms (fixed factors, limited tech, always want make more) Macroeconomics aggregation, total output, consumption, investment, employment etc. Main characteristics of market economy: self-interest, incentives, market prices and quantities, institutions(governments). Complements in consumptions goods that tend to be consumed together. Flow - how many in time (quantity demanded) Stock measured-how many at a point in time. Quantity supplied is a flow opposed to a stock. Supply more as price increases not always the case. The concept of a market differ in the degree of competition among buyers and sellers. Perfectly competitive market buyers and sellers are price takers, pressured by competition for both parties.
