Economic Foundations: Demand, Utility, and Saving
Elasticity of Demand: Core Concepts
Elasticity of demand refers to the responsiveness of the quantity demanded of a good or service to changes in its price or other influential factors, such as income or prices of related goods.
Types of Demand Elasticity
- Price Elasticity of Demand (PED): Measures the responsiveness of quantity demanded to changes in price.
- Income Elasticity of Demand: Measures the responsiveness of quantity demanded to changes in consumer income.
- Cross-Elasticity of Demand: Measures
Economic Debates: Austerity, Globalization, and US Politics
Austerity in Spain: Economic Perspectives
Edward Hugh’s View
- Austerity alone is not enough, but it is necessary.
- Spain faces high public debt.
- Rising unemployment and youth emigration threaten the public system.
- The Spanish government must regain confidence and competitiveness, requiring collaboration from EU countries.
David Lizoain’s Perspective
- Austerity measures and increasing taxes are a short-term disaster, leading to more unemployment, poverty, and fewer social services.
- Therefore, Spain needs political
Economics Fundamentals: Scarcity, Choice, and Advantage
A Clinton Foundation success story is that it loaned $23,000 to Rwandan coffee growers to support improvements to coffee washing stations and provided technical support. What was the source of the success? The technical support allowed Rwandan coffee growers to improve their knowledge of coffee farming, which increased their human capital. The improvements to washing stations was a change in physical capital that allowed farmers to increase the quantity of washed coffee.
Economics: Core Concepts
Business Funding Strategies: Types of Capital & Financing Options
Understanding Business Funding: Sources and Types
Key Characteristics of Funding
- Funding: Obtaining financial resources necessary to carry out an investment or business activity.
- Duration:
- Permanent Capital: (e.g., members’ contributions, self-financing, long-term debt)
- Current Liabilities: (e.g., debts to suppliers and creditors)
- Ownership:
- Own Resources: (e.g., partners’ capital, self-financing)
- External Resources: (e.g., bank loans, bonds)
- Origin: External and Internal resources.
External Funding: Short-
Read MoreUnderstanding Trade and Distribution Channels in Spain
Tema 8: Trade and Commerce
1.1 Trade: Production and Consumption Exchange
Increasing the volume of production and consumption implies a very active exchange of goods and services. This exchange is called trade. Specific markets exist where products are exposed, alongside abstract markets like stock exchanges.
Notes on Modern Trade: Today’s trade is complex, characterized by strong demand concentration, increasing specialization, trading of diverse products, global activity, and the creation of specialized
Read MoreMarket Structures: Competition, Monopoly, Oligopoly, Monopolistic
Perfect Competition: Market Fundamentals
Perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a “commodity” or “homogeneous”). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.
Key Characteristics of Perfect Competition
- Sellers: Typically small to medium-sized firms.
- Consumers: Have many different options and extensive information