ECON100- Midterm Exam Guide - Comprehensive Notes for the exam ( 32 pages long!)
5 Oct 2017
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Inputs (resources) are not perfect homogenous: some inputs (such as workers) are better at making steel than other inputs, as we expand steel production, well use the inputs that are the best for making steel. If we keep expanding production, we"ll ha(cid:448)e to sta(cid:396)t usi(cid:374)g i(cid:374)puts that a(cid:396)e(cid:374)"t as good at (cid:373)aki(cid:374)g steel. You work really hard and deserve an a, but you have a high gpa, so you get a c. 9/11/17: objectives, explain why people participate in markets, describe what market demand and supply measure, depict how and why a market equilibrium is found. Income: referring to how much money the buyers have. Increase in income increases demand, and a decrease in income decreases demand: positive relationship, number of buyers, refers to how many people are buying the good or service. Inverse relationship between the price of compliment goods and demand. Increase in price of complimentary good, demand decreases.
