RSM100Y1 Chapter Notes - Chapter 3: Monopolistic Competition, Demand Curve, Economic Equilibrium
Document Summary
Lo 3. 1: discuss microeconomics and the forces of demand and supply. Economics: the social science that studies the choices people and governments make when dividing up their scarce resources. Microeconomics: the study of small economic units such as individual consumers, families and businesses. Macroeconomics: the study of a nation"s overall economic issues, such as how an economy maintains and divides up resources and how a government"s policies affect its citizens" standards of living. Pertains to the choices about where to spend money as these choices help to set both the prices of goods and services and the amounts sold. Demand: the willingness and ability of buyers to purchase goods and services. Supply: the willingness and ability of sellers to provide goods and services. Demand is affected by customer preferences and incomes, the prices of substitute and complementary items, the number of buyers in a market, and the strength of the buyers" outlook for the future.
