EconomicsNotes微观经济学-英文笔记-需求.docVIP

Pavane’s Economics Notes [4th Feb 2009] Economics is the study of how we use our limited means to satisfy our unlimited wants. Limited Means ---- All people have limited time, skills and money so they have to make choices to how to use them to the best advantage for them. Choice ---- Since we can’t have everything we want as we have limited means we have to make decisions. (Decisions between alternatives) Opportunity Cost ---- The next best alternative forgone when a decision is made. [5th Feb 2009] Opportunity cost Unlimited wants Choice Scarcity Limited means The economics problem is scarcity. This means that we have limited means but unlimited wants. Because of this we have to make a choice. Every choice has an opportunity cost. Needs ---- Those things we require in order to sustain life. e.g. food, clothing and shelter Wants ---- Things we desire to make our life more enjoyable. e.g. cell phone, stereo, SPA Wants change as we get older because our tastes change and new things are introduced as technology improves. Unlimited wants Limited Means Scarcity Choice Opportunity cost [17th Feb 2009] Values ---- Core beliefs or principles that influence your decisions. Honesty Integrity Fair-trading Consideration of others Influents on values: Culture, Environment, Education, Upbringing (Family) Internet, Finance Demand ---- Demand is the amount of a good or service that a person is willing and able to purchase at each price. The law of Demand: ---- As the price of a good or service rises, the quantity demanded falls or as the price falls the quantity demanded increases, ceteris paribus. Ceteris paribus ---- All other factors remain constant. [17th Feb 2009] Hugh’s weekly Quantity Demanded schedule Price [$] Quantity demanded 0.50 30 1.00 20 1.50 12 2.00 7 T Title is clear starting what the graph shows and the time period. A Even and appropriate scale on your axis. L Label axes with item and unite. P Plot your points and join th