Monday, January 25, 2016

Unit 1; Day 2

What causes the PPC/PPF to shift?
 Advances in technology
 Change in Resources
 Change in labor force
 economic growth
 Natural disaster/war/famine
 More education/training(Human Capital) 

5 Determinants that cause a change in demand
Δ Buyer's Taste (ads)
Δ # of Buyers (Population)
Δ Income (Normal vs Inferior Good)
Δ Price of Related goods (Complementary and Substitute)
Δ Expectations

Demand is quantities that people are willing/ able to buy at varying prices
Law of Demand: Inverse relationship between price and quantity demanded


A Demand Curve

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