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Demand (Central concepts (Limited means (Time (there is only 24 hours in a…
Demand
Central concepts
Needs
Things humans must have to sustain life such and water, oxygen, food...
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Limited means
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Skills (lacking in qualifications, ability, experiences, strength...)
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Scarcity
Limited resources to satisfy wants and need, limited means in relation to unlimited wants and needs
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Opportunity cost
Where a choice has been made between two or more alternatives and the opportunity cost is the option that was not chosen
values
our values are our core beliefs that influence our choices about how to use our limited means and are influenced by previous experiences and family.
Complementary goods
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State the income effect (how as price increases/decrease the good becomes relatively more/less affordable and are less/more willing and able to pay for the good/service with the consumers given income
Due to the unique complementary relationship we can see that as price increases or decreases, the quantity supplied increases or decreases and so the quantity demanded for the complementary good increases or decreases and is shown on the graph (units).
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Substitute goods
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State the income effect (how as price increases/decrease the good becomes relatively more/less affordable and are less/more willing and able to pay for the good/service with the consumers given income
Due to the unique substation relationship we can see that as price increases or decreases, the quantity supplied increases or decreases and so the substitute increases/decreases in demand and is shown on the graph (units).
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Conflict
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Due to conflict, both values cannot be satisfied with light a compromise
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Law of Demand
As price increases, the good becomes relatively less affordable and the consumers are unable to afford it wither fixed income.
As price increases, quantity demanded decreases, Vick versa, Ceteris Parabus
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all factors remain the same except for price, eg. environmental factors.
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income
luxury goods
as income increases, quantity demanded for luxury good increases
inferior goods
as price increases, quantity demanded of inferior goods decreases
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