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## Economics Resources (factors of production)
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**Definition** Resources needed to provide goods/services to consumers
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Natural Resources
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- raw materials that come from the earth, water, and air.
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- for example a pencil, the raw materials are the lead, wood, and anything else that makes up the pencil
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Human Resources
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- the people who work to create the goods and services
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- taking on the example of the pencil again, the woodwork and and things done to make the pencil (shape and usage)
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Captial Resources
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- resources that last for a long period of time and require investement on the part of the buisness
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- the machines that can be in an assembly line which are used for a long period of time.
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In most cases, it takes a combination of all 3 economic reousrces to create the good and services.
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What happens if there isn't enough of an economic resrouce (i.e Oil)
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- The price of the good/service increases
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- Alternatives must be found for the resource
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- Example, a different method to be an alternate instead of oil when frying eggs in a restaurant.
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## Demand and Supply
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2 Things to understand (2 principles)
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- looking at the market side of consumers
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- looking at the market side of the producers
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Consumers buy the things that the producers take to the market.
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As demand raises, the price also increases (to maximaze on the profit)
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As demand lowers, the price also decreases (to encourage people to buy more and increase demand)
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When the price is high, the demand is low (people don't want to buy something for more money)
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When the price is low, the demand is higher (people want to buy something for less money)
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### Example
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I'm selling chocolate!
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- Who would like to buy some?
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- What will you pay for it?
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- Conduct a bidding session
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### Demand
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- the quantity of goods or service that consumers are **willing and able** to buy ata a particular price
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### Law of Demand
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- Ususally demand goes up as prices goes down, and vice versa
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### What creates demand
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1. consumer is aware & interested in the goods
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2. there is 'supply' of the good/serivice
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3. price is reasonable and competitive
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4. The constomer can access the good
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### What will Change Demand
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1. Change in consumer income
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2. Change in consumer's taste
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3. Changes in what we expect in the future
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4. Changes in population
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## Supply
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**Definition:** The quantity of a good or service that businesses are willing and able to provide within a range of prices
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- Law of supply: As supply goes up, prices go up
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### What changes the quantity suppplied?
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- A change in the number of producers -> Competition
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- Price of related goods (if gas prices increase, people may buy more energy efficient cars)
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- Changes in technology (VCR sales vs DVD sales)
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- Changes in cost of production
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