Ch 1 Business Notes

Satisfactory Essays
* What are profits? diff. b/w rev.& expenses * Factors of Production The resources that a country’s businesses use to produce goods are called

* A planned economy relies on a centralized government to Control all or most factors of production

* Communism and Socialism—2 most basic forms of planned economies are * Capitalismeconomic system provides for the private ownership of the factors of production and also encourages entrepreneurship by offering profits as an incentive? * Mixed Market— economy has characteristics of both planned and market economies. * Socialism—economic system do we see the government owning and operating selected major industries? * Define * demand—The willingness and ability of buyers to purchase a product, good, or service * privatization—The process of converting government enterprises into privately owned companies

* Supply—The term refers to the willingness and ability of producers to offer a good or service for sale. * “Buyers will purchase (demand) more of a product as its price drops and less of a product as its price increases.” This is referred to as The Law of Demand * The concept that producers will offer more of a product for sale as its price increases and less as its price decreases is known as The Law of Supply

* When plotted on the same graph, the supply curve and the demand curve will normally Cross one another at some point * On a graph showing the supply curve and the demand curve, the point at which the supply curve crosses the demand curve is referred to as the Equilibrium Price * A Surplus occurs when the quantity supplied exceeds the quantity demanded. * List the four required elements for a private enterprise system 1. Freedom of Choice 2. Competition 3. Private Property 4. Profits

* Exists when an industry or market has only one producer Monopoly

* Outline the history of U.S. business

You May Also Find These Documents Helpful

  • Good Essays

    Essay Supply and demand

    • 633 Words
    • 2 Pages

    On the other hand we have the supply. The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period. The law of supply explains that the quantity of a good supplied in a given time period increases as its price increases, ceteris paribus.…

    • 633 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The law of demand states that quantity demanded rises as price falls and other things stay constant. The quantitly of a good demanded is inversely related lto the good’s price. (Colander, 2013, Chapter 4). For example, as the price of a good increase the demand for that good will decrease. The law of demand also relates to a decrease in the price of a good will increade the demand for that product.…

    • 203 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    | People will buy more of a good when its price falls and less when its price rises, according to the _______. Law of demand…

    • 705 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Study Guide Eco/365

    • 2073 Words
    • 9 Pages

    The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes…

    • 2073 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    The law of demand states that the demand of goods is related to the pricing. If the pricing of the good goes up the demand of the good goes down.…

    • 126 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    If all other factors are equal, the demand will go down if the price goes up, and the demand will go up if the price goes down.…

    • 401 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    according to supply and demand, as the demand for an item increases so does the price. Taking…

    • 869 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Consumer demand and seller supply are the foundation of the market equilibration process. The laws of supply and demand explain how the relationship between price and quantity relate to the process. The law of demand explains how demand rises and falls as product price increases and decreases (McConnell, Brue, & Flynn, 2009). Provided there are no other factors to consider, consumers will buy more of a particular product when the price falls and less of it when the price rises. The law of supply demonstrates how quantity supplied increases and decreases as the price of a product rises and falls (McConnell, Brue, & Flynn, 2009). Basically, suppliers prefer to sell their goods at higher prices so that they make more of a profit.…

    • 601 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Tkkkk

    • 2008 Words
    • 9 Pages

    Law of Demand: Downward slope, and inverse relation of price and quantity demand. When price of oranges goes up, the quantity demand will decrease, because of higher price, and substitutes.…

    • 2008 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    3. The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes…

    • 1838 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Managerial Economics

    • 9650 Words
    • 39 Pages

    The law of demand states that, holding all else constant: A. B. C. D. as price falls, demand will fall also. as price rises, demand will also rise. price has no effect on quantity demanded. as price falls, quantity demanded rises.…

    • 9650 Words
    • 39 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The law of demand is if the demand of something goes up then the supply will go down and vice versa for the law of supply.…

    • 381 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    a. Law of supply and demand: Demand, the higher the price of a good the less amount consumers will demand and vice versa. This causes a downward slope on the demand curve. Supply, reveals the quantities that will be sold at a certain price, the higher the price the more quantity is supplied, causing an upward slope on the supply curve.…

    • 898 Words
    • 4 Pages
    Good Essays
  • Good Essays

    It is understood that when prices increases, the quantity of supplies increases; as prices decreases the quantity of supplies available will decrease as well. The law of supply states the relationship between the quantity of supplies that increases to the quantity of supplies that decreases. The determinants that influences supply are, (1) resources prices for goods, (2) technology, (3) prices of related goods, (4) taxes and subsidies for goods, (5) producers expectations, and (6) the numbers of sellers in the market (Beggs,…

    • 583 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Econ 545 Quiz 1

    • 1574 Words
    • 7 Pages

    Supply is the quantity of a product producers are willing and able to put on the market at various prices, all other relevant factors being held constant. The law of supply reflects the positive relationship between price and quantity supplied: The higher the market price, the more goods supplied; and the lower the market price, the fewer goods supplied (Stone 76).…

    • 1574 Words
    • 7 Pages
    Better Essays