Economics (from Greek oikonomos, for one who manages the household) is the study of the production, distribution and consumption of goods and services, focusing on the behaviour and interaction of economic agents and economies themselves.
Why study economics? It’s a good question, and one I’d like to be able to answer with something better than “it’s part of my schoolwork”. I do think that understanding more about the forces and principles at play in these critical systems is useful: expanding my mind, informing decisions.
Market Failure Question:
“What factors have lead to market failure and the decline of journalism?” “How has market failure lead to the decline of journalism?” Slides:
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants – a consumer may be able to differentiate between a need and a want, but from an economist’s perspective, they are the same thing.
Elasticity is a measure of a variable’s sensitivity to a change in another variable. In business and economics, elasticity refers the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.
Supply and Demand
Price and elasticity
Average variable cost The cost of production of a good includes “fixed” and “variable” costs. Fixed costs include those costs that do not vary by the number of units produced e.