General Economics
Popis:
Demand is the relationship between price and quantity demanded at a given price.
Supply is the relationship between price and quantity supplied at a given price.
A Change in Demand with supply held constant
1. An increase in demand will rise the price and increase the quantity traded.
2. A decrease in demand will lower the price and reduce the quantity traded.
Changes in both Demand and Supply
If demand and supply change in the same direction, it is possible to know the changes in quantity, but the effect on price is uncertain. E.g. if the price of a complement falls, and also the firm’s technology advances, the demand and supply curves both shift rightward. As a result, the quantity increases, but the price may
• rise (if the demand shift is larger)
• fall (if the supply shift is larger)
• stay the same (if the shifts are of equal size)
If supply and demand changes in opposite directions, we can always determine the effect on price but the impact on the quantity is ambiguous. For example, if the price of a substitute falls (so that the demand curve shifts leftward) while simultaneously technology advances (which causes the supply curve shifts rightward), the price will definitely fall but the quantity may
Klíčová slova:
price
quantity
economics
supply
budget constrains
Obsah:
- 1. Supply, demand and market equilibrium. 4
2. Indifference curve, budget constrains, consumer optimum 10
3. Production factors and their markets. Supply and demand of production factors. 14
4. Market structure - perfect and imperfect competition. Market failures. 18
5. General equilibrium theory. Properties and characterization of general equilibrium. 22
6. Production and cost functions 25
7_Theory of the firm. Profit maximization. 31
8. Indicators of national economy 35
9. GDP determinants and their influence on the level of output 43
10. The aggregate demand and supply model 45
11. Formulation and characteristics of IS/LM model 51
12. Different views of inflation. Inflation and unemployment. Philips curve. 58
13. Diversity of fiscal and momentary policy. Stimulations for an economic growth 64
14. Balance of payments as one of the major indicators of a country’s status in international trade 68
15. Business organization (location of business firms, legal forms, co-operation and integration) 72
16. The production process (business decisions and production, short-run, long-run time horizon) 75
17. Profits and profitability analysis (accounting, economic profit, breakeven, margin of safety) 81
18. Basic accounting statements (balance sheet, income statement, measuring problem) 85
19. Financial planning (projected financial statements, methods). 90
20. Starting up business (general recapitulation of business economic approaches) 92
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