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Economic Study Guide

Horizontales
Demand that is sensitive to price change
This is created by the manufacture because they can't keep up with the demand
A good that consumers demand more of when their income increases
A good that consumers demand less of when their income increases
These are people who take new ideas and bring them to the market by the means of the factor of production
Demand that is not sensitive to price change
When you pick a job over playing a sport. the sport is your
A Gov't payment that supports a business or market
Wealth should be distributed evenly throughout society
PS4, Xbox one, and an Iphone are examples of
Every decision has this because you give up something to get something
Verticales
This always exist because resources are limited
Car wash, nail salon, and hairdresser is an example of a
A way to attract customers through style, service, or location, rather than a lower price.
This is the one part of Adam Smith's theory. This gives manufacturers the ideas because its what the consumers want
The other theory from Adam Smith because we have this in the market the prices are regulated on their own.
Gov't controls and owns all resources and means of production and makes all economic decisions.
The law of this states that consumers will buy more of an item when the price is low.
A product that is the same no matter who produces it
The law of this states stores we put the items on the shelf when prices are up