economics

• Economics is the study of how people make decisions and how they allocate scarce resources.
• scarcity is the fact there is an infinite amount of wants compared to a limited amount of resources
• Rationality, all people and businesses are perfectly rational
• To make perfect decisions you need perfect information

  ● We must know everything about the product

  ● When buying a car we might not know everything about it

  ● When buying electricity or something there is no difference we would
• Law of supply is the inverse relationship between price and quantity supplied.
• law of demand is the inverse relationship between price and quantity demanded.
• a price is when a business sets the price of a good or service to maximise profit
• quantity demanded is the amount of a good or service that consumers are willing and able to buy at a given price
• Incentive is a motivating factor that encourages someone to do something.
• Price setting requires compromising
• in order to maximise profit, you sell at maximum profit
• market price is the price at which a good or service is bought or sold in the market
• in crypto high prices attract more suppliers
• bitcoin mining is a process of adding new bitcoins to the blockchain
• equilibrium price = final price
• Trade is a voluntary exchange of goos and services between economic actors such as consumers.
• before we had money people traded which was a form of currency