Economics:

23 September 2021;

Scarcity=rare, we always want more, and can’t have all we want.  We face scarcity which is why we
have to make choices.

An incentive is a reward that encourages an action or a penalty that discourages an action.

Economics are a social science that studies the choices that everyone makes facing scarcity.

Economics are divided in 2 main parts: microeconomics and macroeconomics.

- Microeconomics: the study of choices that individuals and businesses make, how their choices
interact in markets, and the influence of governments (ex: why are people downloading more
movies?)
- Macroeconomics: the study of performance of the national and global economies (ex: why does
the unemployment rate fluctuate?)

7 October 2021;

Graph:
- Positive relationship: when x and y increase/decrease at the same time, if they move in the
same directions  for example: x1=4 & y1=6 and x2=6 & y2=8

27 October 2021

Being efficient= getting what you want at a low cost

Tradeoff= take something for something else  opportunity cost = (loss)/gain.

Chose at margin= minimum cost with a max benefit (I studied the minimum required for the minimum
grade and went to the party the max of time).

Example: loss 10 oranges and gain 5 apples

−10
Opportunity cost = =−2 (the opportunity cost is always negative because the loss is negative)
5

When the price of factors of production increase, the supplies decrease.

Equilibrium: point intersection de supply and demand.

Quantity equilibrium= quantity supply (Qs) = quantity demanded (Qd)

Qd<Qs  surplus (Qs-Qd>0)

Qd > Qs  shortage =black market (Qs-Qd<0)

Black market price> price expected

When the demand increases, the demand curve shifts rightward.

- Surplus: price over the equilibrium price.

- Shortage: price under the equilibrium price.

The equilibrium changes when either the demand or the supply changes/shifts.

Demanded shifted, equilibrium changed but the supply didn’t change; the point of equilibrium did.