Define supply
Various quantities that firms are willing and able to sell at various prices at a given time
Define quantity supply
certain quantities that firms are willing and able to sell at particular prices at given times
What is the reason behind a positive supply slope?
Profit incentive where higher prices need higher quantities
What are the factors affecting supply
Price
cost of production
factors if production
season
number of firms
What is some exceptions to law of supply
rare goods, natural goods
What are the four functions of money
-legal tender :widely accepted
-medium of exchange
-stores value and and/or differs payments
-provides value/worth on the goods and services
What are the three types of economies?
Capital - free market ran through demand and supply (usa)
Mixed- gibernment allocates some resources and some is allocated through free market (uk)
Command- government allocates all resources
What are the pros and cons of capital economy with free market?
+more freedom,choice and variety
+less government corruption and failure
+ competitive and efficient because if you work hard you get more money
-inequality rises
-no social welfare
-no provision of merit goods like healthcare
What is market equilibrium?
Where buyer and seller agree to exchange goods and services at a particular price at a given pricd
