ECON 1 Lecture Notes - Lecture 3: Opportunity Cost, Inverse Relation, Investment Goods
Document Summary
More resources for investment goods -> fewer resources for consumer goods. More invest leads to outward shift (thus, more. Income flows through factor markets investment and consumer goods) This $ is either consumed or save. Chapter 4: markets, prices, & the us economy. 2 determinants of health: long-run growth & full employment of resources. In order to prosper, must increase potential/ capacity of resources . Demand: amount of a product that individuals are willing & able to buy over a. Individual demand and the consumer"s economic problem certain period of time investment. Price centerpiece of free market (incorporates economic info & coordinates exchanges) Other things equal (ote) = ceteris paribus. Individual demand schedule: quantity of a good that an. Definition: ote, lower the price of a product, the larger the quantity demanded; the higher the price of a product, the smaller the quantity demanded.
