BUS 082 Lecture Notes - Lecture 6: Core Inflation, Economic Equilibrium, Demand Curve

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: gradin

Document Summary

A graph of the amount of a product that buyers will purchase at different prices. A graph that shows the relationship between different prices and the amount of goods that sellers will offer for sale, regardless of demand. Supply and demand curves meet at the equilibrium price. Buyers and sellers make choices that restore the equilibrium price. Factors of production play a central role in the overall supply of goods and services. A change in the cost or availability of any of these inputs can shift the entire supply curve. Inflation: rising prices caused by a combination of excessive consumer demand and higher costs of raw materials, component parts, human resources, and other factors of production. Core inflation rate: the inflation rate after energy prices and food prices are removed: demand-pull inflation: excessive consumer demand, cost-push inflation: increases in costs of the factors of production, hyperinflation: an economic situation marked by soaring prices.