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Buisness/BBI201/Economics.md

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