Term
| What effect do you think climate change could have on coffee output? Explain. |
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Definition
| Because coffee is a plant and food if climate change does become a dangerous factor and it makes the heat of where it's grown too much for the plant then it won't be able to grow and the amount of product will become very limited. Because coffee is such a huge thing and you can buy it anywhere it will start to become a luxury because of the obscurity of the product making it much harder and much more expensive to get. Because the amount of a product has gone down but the need for the product has gone up it will make the product much more expensive than before because it's harder to come across. This was an example last year when masks were needed everywhere companies couldn't produce enough so they became more expensive and harder to find. And because coffee is a plant and global warming isn't something that can just go away by making more factories it will but a high price tag on coffee forever making it like a fine wine or luxury food it |
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Term
| Why don’t economists consider the effects of technology when focusing on the short-run? |
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Definition
| Because technology is all things that are changed in the long term. Like building buildings, making new technology, these are big things that can't just change in a day or two like changing the number of people working for you is a short term change you can do that whenever and it will have an effect on the business. |
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Term
| What is the difference between a fixed cost and a variable cost? Give some examples of each. |
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Definition
| A fixed cost is a cost that can not be changed. It is like a market price and is something you have to make your price by. Compared to variable cost which is the cost you give the price after buying the products at market value then you can sell them at an increase in price to make a profit which is the variable cost. Like buying jewelry you buy it at a price and then put your own price on it which is usually around a 500% markup and that's how you make a profit. |
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Term
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Definition
| The rate at which an individual business produces products. |
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Term
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Definition
| All production of a product in your local market. |
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Term
E=%Q/%P
E>1 Elastic
E<1 Inelastic |
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Definition
E=%Q/%P
E>1 Elastic
E<1 Inelastic |
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Term
| Diminishing Marginal Returns |
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Definition
| More people less production |
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Term
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Definition
| capital costs are fixed you cant change capital |
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Term
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Definition
| you can build more buildings get new technology change big things |
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Term
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Definition
| increasing production, decreasing production, negative returns when it starts to go down |
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Term
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Definition
| if the prices of the materials you need to make prices go up then all the products that use that the prices will go up |
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Term
If demand increase and supply decares then the price
Will increase and quantity is ambiguous |
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Definition
If supply and demand move in opposite directions your
Going to be able to predict price |
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Term
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Definition
| supply does affect demand |
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