Your SlideShare is downloading. ×
0
Economics
Economics
Economics
Economics
Economics
Economics
Economics
Economics
Economics
Economics
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Economics

222

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
222
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Economics Economics is a social science that studies choices that people, businesses, government and entire societies make as they cope with scarcity. There are two types of economics: Macroeconomics Microeconomics
  • 2. Factors of production Economics depend on the following four factors of production: Land Labour Capital Entrepreneurship
  • 3. Demand and Supply If you demand something you: Want it Can afford it Plan to buy it
  • 4. Law of DemandThe law of demand states: Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the greater is the quantity demanded.
  • 5. Factors bring changes in demand Expected future prices Income Expected future income Population Preferences
  • 6. Supply If a firm supplies a good or service, the firm: Has the resources and technology to produce it, Can profit from producing it Plans to produce and sell it.
  • 7. Law of SupplyOther things remaining the same, the higher the priceof a good, the greater is the quantity supplied; andthe lower the price of a good, the smaller is thequantity supplied.
  • 8. Factors that brings change in supply  The prices of productive resources  The prices of related goods produced  Expected future prices  The number of suppliers  Technology
  • 9. ElasticityPrice elasticity of demand is a unit free measure of the responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers’ plans remain the same.Calculating Price Elasticity of DemandPrice Elasticity of Demand:Percentage change in quantity demanded Percentage change in price
  • 10. Types of elasticity of demand Perfectly inelastic demand Unit elastic demand Perfectly elastic demand

×