study notes
Week One Student Guide
One purpose of this course is to integrate economic concepts and business decision making. Managers must make decisions based on available information, theoretical knowledge, and experience. This week’s information may help you understand that decisions must often be made based on limited information regarding the direction of the company, which affects revenue, pricing, and market stability.
A manager must understand many factors to help a business increase revenue. One factor is that price times quantity yields total revenue for a product. Another relevant concept is that there are opportunity costs associated with any decision. Elasticity also affects revenues as managers change prices and quantities.
Increasing Revenue
OBJECTIVE: Choose methods to increase revenue in an organization.
Resource: Ch. 1, 2, & 6 of Economics
Content
Ch. 1: Limits, Alternatives, and Choices
The Economic Perspective
Theories, Principles, and Models
Microeconomics and Macroeconomics
Individuals’ Economizing Problem
Society’s Economizing Problem
Production Possibilities Model
Unemployment, Growth, and the Future
Ch. 2: The Market System and the Circular Flow
Economic Systems
Characteristics of the Market System
Five Fundamental Questions
The “Invisible Hand”
The Demise of the Command System
The Circular Flow Model
Ch. 6: Elasticity, Consumer Surplus, and Producer Surplus
Price Elasticity of Demand
Price Elasticity of Supply
Cross Elasticity and Income Elasticity of Demand
Consumer and Producer Surplus
OBJECTIVE: Explain the market equilibrating process.
Resource: Ch. 3 of Economics
Content
Ch. 3: Demand, Supply, and Market Equilibrium
Markets
Demand
Supply
Market Equilibrium
Application: Government-Set Prices
Note. The information above is intended to help you complete your assignments. Read chapters in their entirety, as indicated in the syllabus. Additional
One purpose of this course is to integrate economic concepts and business decision making. Managers must make decisions based on available information, theoretical knowledge, and experience. This week’s information may help you understand that decisions must often be made based on limited information regarding the direction of the company, which affects revenue, pricing, and market stability.
A manager must understand many factors to help a business increase revenue. One factor is that price times quantity yields total revenue for a product. Another relevant concept is that there are opportunity costs associated with any decision. Elasticity also affects revenues as managers change prices and quantities.
Increasing Revenue
OBJECTIVE: Choose methods to increase revenue in an organization.
Resource: Ch. 1, 2, & 6 of Economics
Content
Ch. 1: Limits, Alternatives, and Choices
The Economic Perspective
Theories, Principles, and Models
Microeconomics and Macroeconomics
Individuals’ Economizing Problem
Society’s Economizing Problem
Production Possibilities Model
Unemployment, Growth, and the Future
Ch. 2: The Market System and the Circular Flow
Economic Systems
Characteristics of the Market System
Five Fundamental Questions
The “Invisible Hand”
The Demise of the Command System
The Circular Flow Model
Ch. 6: Elasticity, Consumer Surplus, and Producer Surplus
Price Elasticity of Demand
Price Elasticity of Supply
Cross Elasticity and Income Elasticity of Demand
Consumer and Producer Surplus
OBJECTIVE: Explain the market equilibrating process.
Resource: Ch. 3 of Economics
Content
Ch. 3: Demand, Supply, and Market Equilibrium
Markets
Demand
Supply
Market Equilibrium
Application: Government-Set Prices
Note. The information above is intended to help you complete your assignments. Read chapters in their entirety, as indicated in the syllabus. Additional