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economics - Coggle Diagram
economics
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definition
equilibrium
Equilibrium in economics is a state where opposing forces—like supply and demand—are perfectly balanced.
shortage
A shortage in economics occurs when the quantity demanded exceeds the quantity supplied at a specific price point.
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definition
equity
fairness, justice, and impartiality in the distribution of wealth, income, and opportunities
effciency
using scarce resources optimally so that waste is minimized and maximum benefit is achieved for society
economic growth
economic growth is the sustained increase in a nation's capacity to produce goods and services over time.
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definition
demand
a consumer's desire and willingness to pay a price for a specific good or service, backed by the financial ability to actually purchase it.
example
demand: If a cup of coffee costs ($5), you might buy one. If the price drops to ($2), you might decide to buy two
supply: A local café is willing to bake 20 blueberry muffins when they sell for ($3) each. If the price jumps to ($6) each, they decide to bake 50 muffins to maximize their profits.
supply
supply is the total amount of a specific good or service that producers are willing and able to offer for sale at various prices over a given period.
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Price elasticity measures how sensitive the quantity demanded or supplied of a good is to a change in its price.
Price inelastic means that a product's demand or supply does not change significantly when its price goes up or down.
In economics, "unitary" usually refers to unit elasticity (or unitarily elastic). It describes a scenario where a change in one economic variable (like price) causes an exactly proportional change in another variable (like quantity demanded or supplied).