COMM 103 Chapter Notes - Chapter 2: Oligopoly, Stock Market Index, Gross Domestic Product
3 Feb 2014
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Factors that are essential to ensure that our economy remains strong and competitive now and in the future: productivity gains, strong business investment, technological innovation, moderate wage increases, and a favourable currency exchange rate. Core requirement for stability and growth of an economic system is its ability to service and promote both the current and future economic activity. October 11 & 14: the point where the quantity supplied equals the quantity demanded, with the price point set by this equalization. No shortage or surplus of goods at the agreed upon price. When surpluses and shortages occur, market will correct itself back to equilibrium price: prices may be influenced by external mechanisms: Duties, tariffs, subsidies, or regulatory practices: factors that affect demand: Consumer income, consume preference, the number of product and/or services substitutes, and cost base reductions due to technology and productivity improvements.
