Create your own awesome maps

Even on the go

with our free apps for iPhone, iPad and Android

Get Started

Already have an account?
Log In

Economics Mind Map by Mind Map: Economics Mind Map
5.0 stars - 1 reviews range from 0 to 5

Economics Mind Map

This is just a demo map that you can delete right away, if you feel like it...

Productive Resources and Economic Systems: Traditional, Command, Market

Market, consumers determine what is provided

Traditional focuses on stability and has a emphasis on spiritual and cultural activities

The central planners for Command focus on economic growth by directing resources in a specific direction and people with have very little choice

Demand and such

As prices increase, demand decreases

As prices decrease, demand increases

When the prices of products changes, it determines the amount that the product will be sold, so its key for companies to find and see where that happy medium is so they have optimum sales

Increase in supply means decrease in price, increase in quantity, demand would be unchanged and supply would increase

Decrease in supply means increase in price, decrease in quantity, demand is unchanged and decrease in supply

Increase in demand results in price increase, decrease in quantity, increase in demand and supply is unchanged

Decrease in demand means price decrease, quantity decrease, demand decrease and supply unchanged

Microeconomics

Price elasticity: The responsiveness of a product quantity demanded to a change in its price

Elastic demand: Demand for which a percentage change in a product's price causes a larger percentage change in quantity demanded

Inelastic demand: Demand for which a percentage change in a product's price causes a smaller percentage change in quantity demanded

Ed=Q2-Q1 Divided By P2-P1 ------------ ------- (Q2+Q1)/2 (P2+P1)/2

In my opinion supply and demand is all about making money for companies. And the way they gather the information and data abut there products really allows companies to see how well the product will sell and when...ect. And to make money in a company you have to know the product and how much demand and ect so you know what to produce and how much to sell and the price to sell at. If you make the product to expensive then people won't buy it. Or if you make a lot of a product, you have to make sure people will buy it.