Economics - Definition

Economics can be defined as a study of Microeconomics and Macroeconomics to consume demand and supply, to produced goods and services. A social science shows that how individuals, governments, firms and nations make choice on their allocating scarce resources to satisfy their unlimited wants.

Scarce resources -

factors of production           factors of payments
entrepreneur                        profits
labour                                     wages
land                                        rental
capital                                    interests/dividen 




Demand
DD defined as consumer demands of goods and services for a period of time

Law of DD
= relationhsip between products & goods
(if P increase, g decrease) but (if P decrease, goods increase)
 its called inverse relationship


Supply
SS defines as suppliers to produce goods and services for a period of time

Law of SS
= relationship between products and goods
(if P increase, g increase) but (if P decrease, g decrease)




Elasticity (Keanjalan)
DD - change in qty due to change in price
SS- change in qty due to change in price 


elastic
inelastic
unity
perfectly inelastic
perfectly elastic