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Content Overview - Coggle Diagram
Content Overview
Supply and Demand
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demand curve: reflects the price consumers are willing to pay and the quantity consumers are willing to buy
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law of demand: price supplied for a product increases, quantity demanded decreases
price mechanism: the interdependence of product prices, quantity demanded by consumers, and the quantity supplied by producers
supply: the quantity of a good or service producers are willing to supply at a certain price and time
supply curve: reflects the price producers are willing to supply, and the quantity producers are willing to sell
law of supply: as the price for a good or service increases, the quantity supplied simultaneously increases as well
market equilibrium: the quantity demanded by consumers is equal to the quantity supplied by producers
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Traditional Economy
characteristics: goods often traded through barter, customs and traditions dictate price, rare amongst contemporary societies
advantages: active involvement, stronger communities, sustainable lifestyle
disadvantages: slow economic growth, lacks modern technology, vulnerable to disasters
Command Economy
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advantages: everyone receives essentials, less employment, can respond quickly
disadvantages: less innovation, businesses have little competition, minimal consumer choice
Market Economy
characteristics: consumers dictate demand, supply and demand dictates price, minimal government intervention
advantages: more choice, provokes innovation, encourages competition
disadvantages: risk of monopolies, businesses can be frail, wealth inequality
Mixed Economy
characteristics: government and businesses work together, most businesses are privately owned, with some services being government run
advantages: consumer choice, economic stability, government offers consumer protection
disadvantages: government and businesses may disagree, more laws, higher taxes
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