no more pacc! phew~
*throws pacc away*
anyway, i managed to balance equations for exam today;
i just hope my inference is right & the sum is right too;
thank Lord for pulling me through;
i did my best, so Lord, you shall do your best;
i've been clinging on to this phrase always;
i wanna have more faith in you!

tomorrow is the second day of the mst week!
& tomorrow's paper is econs!
HELP!!! jiu ming arrr!
but was glad that it is until market equilibrium;
Lord, please pull me through that too!

topic one:
scarcity is when resources are limited & wants are unlimited;
therefore the world could not fulfill everyone's needs & wants;
resources also known as factors of production;
includes, land, labour, entrepreneurs & capital;
note that capital is not equals to money in econs;
capital equals to the plants/equipment that is used to produce goods;

since not all things are able to be produced by the limitation of resources;
we have to choose what we want to produce;
& every choice incurs an opportunity cost;
opportunity cost is the things we sacrificed in order to reach our target;
for example, what is the opportunity cost of watching a movie at the cinema?
the opportunity might be the good results that i might obtain;
why? because if not for the movie to take place, i could have studied at home harder for the upcoming examinations;

we use production possibility curve to obtain the physical and mathematical answer for an opportunity cost;
when maximum two of the products we want to produce are included in the graph;
they are inversely related;
therefore, to produce more of good A, we have to sacrifice a certain amount of good B;
the ppc also shows the perfect kind of situation things can be achieved;
when points are below the curve, it is because we didn't make full use of our resources;
& points cannot be above the curve;

topic two:
why is the demand curve negatively sloped?
this is because the price and the quantity demand are inversely related;

two types of demand curve - quantity demand & demand curve;
when prices are involved, it is said to be moving along the quantity demand curve;
when prices are not involved, it is said to be a shift in the demand curve;
the direction (leftward or rightward) is determined by the quantity;
since the quantity demand curve involves price, price determinant is involved;
& since demand curve doesn't involve price chance, non-price determinant is involved;

substitution effect is the tendency for customers to switch to another product because it is now cheaper;
for example, the price of chicken goes up;
therefore demand for chicken goes down;
& thus customers purchases more of fish, which seem to be cheaper now;
although the price remained unchanged;

income effect is when the real income is affected;
when the price of chicken changes to be much greater than usual;
the real income of the customers decreased;
this is because the ability to purchase chicken reduced;

normal good = directly relationship between income & demand;
when income increases, the demand of the normal good would thus increased too;
this is because they have the ability to purchase much more of a normal good;

inferior good = inverse relationship between income & demand;
when income increases, the demand of the inferior good would decrease;
this is because they have the ability to purchase much of a normal good;
therefore inferior good is neglected;

assuming the price remained unchanged for both the goods!

substitute goods are goods that satisfy customers in similar needs;
when the price of coca cola increased;
the demand of coca cola decreased;
therefore the demand for pepsi cola (a substitute) increased;

complementary goods are goods that being used to together;
when the price of CD player increased;
the demand of CD player decreased;
& thus the demand of CDs decreased;
because CD & CD players are complement goods;

topic three:
why is the supply curve positively sloped?
this is because the price & quantity supplied are directly related to each other;
when the price of a good goes up;
the supplier would want to supply more & thus produce more;
so that they could earn more at the end of the day;

similar to demand in topic two;
there are two types of supply curve - quantity supplied & supply;
when there is a price change in a good, there is a move along the quantity supplied curve;
when there is no price change involved, there is a shift in the supply curve;
therefore supply curve involved non-price determinant;

supply is always the stand of the seller;
therefore cost of production is often considered and involved;

topic four:
why market equilibrium?
take for an example, when the price of good a falls;
the demand would increase, however, the supply would decrease;
how do we reach a price that both the seller and buyer would agree to sell & buy?
therefore the market equilibrium comes in;

when the market is not in equilibrium;
when the price is above the market price, surplus is created;
quantity supply > quantity demanded;
when the price the below the market price, shortage is created;
quantity supply < quantity demanded;
prices in the market will always change until it reaches market equilibrium prices;

exception!
price ceiling VS price floor;
both are intervenes by government;
price ceiling is set below the market equilibrium price;
& that the seller could not impose prices higher than the price ceiling;
therefore shortage is created;
price floor is set above the market equilibrium price;
a surplus is created;

changes in market equilibrium;
takes place when there's a change in demand or supply or both;