ES 100 Lecture Notes - Lecture 23: Marginal Utility, Marginal Cost, Sustainable Development
Document Summary
Economy: the management of resources to meet needs in the most efficient manner possible. Sustainable development: meeting the needs of the present without compromising the ability of future generations to meet their own needs, long term not short term. Resource: anything with the potential use in creating wealth or giving satisfaction. In real market low cost production of goods requires that some costs are externalized (passed off to someone else) Supply and demand: supply: the quantity that is being offered for sale, demand: the amount of the product that consumers are willing and able to buy. Intersect at market equilibrium: should reach this point in a free market. In real life prices are determined by marginal costs and benefits: marginal cost: seller. Cost of producing one more unit: marginal benefit: buyer. how much would i benefit if i bought one more unit, price elasticity: item follows supply and demand curves exactly.
