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WANTS: This is often thought of as a psychological desire which makes life just a little more enjoyable, but which is not physiological necessary to life. You need oxygen, but you want a hot fudge sundae. Satisfaction is achieved by fulfilling wants.
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Lesson 6: Market Supply | Unit 2: Law of Supply
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Page: 6 of 19
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An important question is: Why does the law of supply work?- The answer rests with production cost. In particular, the law of supply exists because of the law of increasing opportunity cost.
- As we saw with production possibilities analysis, by increasing the production of a good, the opportunity cost of production increases.
- Production cost increases as we increase production. To supply a larger quantity, producers need to cover these higher production costs with a higher price.
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COMPLEMENT GOOD In general, one of two (or more) goods that are related in a joint manner. In terms of demand, complement goods are those that provide satisfaction of a want or need when consumed together. In terms of supply, complement goods are those that are simultaneously produced using a given resource. A complement good is one of two ways that goods are related. The other is a substitute good.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either blue cotton balls or a genuine down-filled pillow. Be on the lookout for gnomes hiding in cypress trees.
Your Complete Scope
This isn't me! What am I?
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
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"Carpe diem! Rejoice while you are alive; enjoy the day; live life to the fullest; make the most of what you have. It is later than you think." -- Horace, Ancient Roman poet
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MU
Marginal Utility
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