Unit 2 - Introduction
2-0 Economics, Scarcity, Factor of Production
Economics
- Economics: the social science that studies the production, distribution, and consumption of goods and services. It examines how individuals, businesses, governments, and other organizations make choices about how to use limited resources to satisfy their wants and needs.
- Macroeconomics: Economic problems encountered by the nation as a whole.
- Microeconomics: Economic problems faced by individual units within the overall economy.
Factors of Production
- Land: Natural resources.
- Capital: Tools which can produce consumer goods.
- Labor: Human capital (labor with training & skills).
- NOT: Money is NOT a factor of production.
Scarcity
TODO:
Unit 4 - Demand and Supply
4-1 Law of Demand
Demand
Demand: the different quantities of goods that consumers are willing and able to buy at different prices.
Law of Demand
Law of Demand: There is an inverse relationship between price and quantity demanded. (Also called Change in Quantity Demanded.)
- x 轴为 Q，y 轴为 P，图像为一条 downward slope。
- all other factor are held constant (ceteris paribus)
值得注意的是，demand 和 quantity demanded 不是同一个东西。demand 移动指的是整个图像的移动，Q demanded 移动指的是点在那根线上动。
Why does the Law of Demand occur?
- The Substitution Effect：Product A 涨价，消费者会买更少 Product A 并且买更多 Product A 的 substitute product，反之亦然。
- The Income Effect：Product A 降价导致 purchasing power 变高，增加 Q demanded。
- Law of Diminishing Marginal Utility：每买一个 Product A 得到的 satisfaction 会在某一刻之后递减。
- 举例：麦当劳咖啡第二杯半价，就是为了把因为 Law of Diminishing Marginal Utility 减少的 demand 加回来。
4-3 Supply (Merchant side)
这一段的很多内容与 Demand 完全对称。
Supply
Supply: the different quantities of a good that sellers are willing and able to sell at different prices.
Law of Supply
Law of Supply: There is an positive relationship between price and quantity supplied. (Also called Change in Quantity Supplied.)
- x 轴为 Q，y 轴为 P，图像为一条 upward slope。
- all other factor are held constant (ceteris paribus)
Why does the Law of Demand occur?
At higher prices profit seeking firms have an incentive to produce more.
标签：Product,轴为,Supply,demanded,AP,Demand,Microeconomics,Law From： https://www.cnblogs.com/AugustLight/p/18416548