ECON 1010 Lecture Notes - Lecture 7: Microeconomics, Competitive Equilibrium
16 Oct 2018
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Defi(cid:374)e key ter(cid:373)s so you (cid:272)a(cid:374) use the(cid:373) a(cid:374)alyti(cid:272)ally (cid:894)def"(cid:374)s are i(cid:373)porta(cid:374)t(cid:895: define supply and demand empirically and how they affect the economy, base to economic analysis, we will study demand and supply mostly. Theories that break down how demand works i. e. price theory. Long-term & short-term supply and demand relationships: possibility curves (up to 10% of the exam questions) On exam, four 10-mark questions involving calculations. Goods are economic when supply < demand. Positive economics = economists are unbiased, merely describing the world. A limit to resources limits the production of commodities: commodities = goods (physical) and services (non-physical) that can be exchanged in markets, resources = inputs used in the production of goods and services. Modern economics adds another category of resource (factor of production: entrepreneurship or technological advancements - Each factor of production has a factor of return (in the production of a commodity)
