100% tevredenheidsgarantie Direct beschikbaar na betaling Zowel online als in PDF Je zit nergens aan vast
logo-home
Economics summary year 1 IBMS / IB 2018 €6,48   In winkelwagen

Samenvatting

Economics summary year 1 IBMS / IB 2018

 90 keer bekeken  4 keer verkocht

I made an improved version of the economics summary I made a couple of years ago to help students understand the subject with more examples and more information.

Voorbeeld 4 van de 40  pagina's

  • 18 oktober 2018
  • 40
  • 2018/2019
  • Samenvatting
Alle documenten voor dit vak (3)
avatar-seller
Maurijn
Economics Summary ‘18
Made by Maurijn van Helvoirt




Supply and demand 2

Market structures 8

Labour market 18

Financial market 25

Aggregate goods market 28

Exchange rate market 36

,Supply and Demand

Market: is any agreement that enables buyers and sellers to get information and to do
business with each other.
- A market has two sides: buyers and sellers
- A competitive market has many buyers and sellers. So no single buyer or seller can
influence the price.

The money price of a good or service is the amount of dollars you have to exchange in order
to get the good or service.

The ratio of one price to another is called a relative price.
- And a relative price is an opportunity cost

Opportunity cost is the ratio of one price to another. The ratio of one price to another is
called a relative price.

The demand and supply curve uses the relative price, so when a price will fall we mean the
relative price. That is, its price will fall relative to the average price of other goods and
services.

Demand
If you demand something, you:
1. want it
2. can afford it
3. plan to buy it

Quantity demanded of a good or service is the amount that consumers plan to buy during a
given time period at a particular price.

The law of demand states: other things remaining the same, the higher the price of a food,
the smaller the quantity demanded; the lower the price of a good, the greater is the quantity
demanded.
- Why does a higher price reduce the quantity demanded?
o Substitution effect
o Income effect

Substitution effect: as the relative price of a good rises, the incentive to economize on its
use and switch to a substitute becomes stronger.

Income effect: when a price rises, the price rises relative to income. Faced with a higher
price and an unchanged income, people cannot afford to buy all the things they previously
bought.

Change in demand: when any factor that influences buying plans changes, other than the
price of a good, there is a change in demand.

, - When demand increases, the demand curve shifts to the right and the quantity
demanded at each price is greater.

Six main factors that bring change in demand:
Price of related goods
- The quantity demanded can change with a change of prices for substitute goods
- F.e. a substitute for energy bars, energy drinks, increases its price. The demand for
energy drinks will decrease while the demand for energy bars increases.

- The quantity demanded of energy bars also depends on the prices of complements
with energy bars.
- A complement good is a good that is used in conjunction with another good
- F.e. if the price of an hour at the gym falls, people buy more gym time and more
energy bars.

Expected future prices
- If the future price of a good rises and if the good can be stored, the opportunity cost
of obtaining the good for future use is lower than it will be in the future when people
expect the price to be higher.
- So people retime their purchases and substitute over time. They buy more now and
less after the expected future price. So the demand for the good today increases.

Income
- When income increases, consumers buy more of most goods. When income
deceases consumers will buy less of most goods.

- Normal good: a normal good is one for which demand increases as income increases
- Inferior good: an inferior good is one for which demand decreases as income
increases.

Expected future income
- When expected future income increases or credit becomes easier to get, demand for
a good or service might increase now.

Population
- The demand also depends on the size of the population. The larger the population,
the greater is the demand for all goods and services.

Preference
- Preferences determine the value that people place on each good or service.

, A movement along the demand curve shows a change in the quantity demanded.
- If the price changes but no other influence on buying plans changes you get a change
in the quantity demanded and a movement along the demand curve. (à #1 / à#2)
A shift of the demand curve shows a change in demand.
- If the price of a good remains constant but some other influence on buying plans,
there is a change in demand. Making a shift in the demand curve as a change of
demand. (D0 à D1/D2) (image 1.1)




Image 1.1: Change in the demand curve

Supply
If a firm supplies a good or service, the firm:
1. has the resources and technology to produce it.
2. can profit from producing it.
3. plans to produce it and sell it.

Resources and technology: are the constraints that limit what is possible.

The quantity supplied of a good or service is the amount the producers plan to sell during a
given time period at a particular price.

The law of supply states: other things remaining the same, the higher the price of a good,
the greater is the quantity supplied; and the lower the price, the smaller is the quantity
supplied.
- When the price increases, the quantity supplied increases because its marginal cost
increases.
- When the price of a good increases, other things remaining the same, producers are
willing to incur a higher marginal cost, so they increase production.

Supply relates to the entire relationship between the price of a good and the quantity
supplied of it.
The term quantity supplied refers to a point on the supply curve

Voordelen van het kopen van samenvattingen bij Stuvia op een rij:

Verzekerd van kwaliteit door reviews

Verzekerd van kwaliteit door reviews

Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!

Snel en makkelijk kopen

Snel en makkelijk kopen

Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.

Focus op de essentie

Focus op de essentie

Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Maurijn. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €6,48. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 84251 samenvattingen verkocht

Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen

Start met verkopen
€6,48  4x  verkocht
  • (0)
  Kopen