Economics Review, pt. 2

Fall 2008

Production Possibilities Curve

Circular Flow Model

Goods & Services Market

Factors Market

Households Firms

Supp

ly R

esou

rces

LLCE

Purchase

Goods &

Services

Prov

ides

Goo

ds &

Ser

vice

s

Hire Resources

Inco

me W

ages

Reven

ue Spending

Demand Curve

Change in Quantity Demanded- Price Effects -

Change in Demand- Non-Price Effects -

Supply Curve

Change in Quantity Supplied- Price Effects -

Change in Supply- Non-Price Effects -

Market Equilibrium

Change in Demandfrom Market Equilibrium

Change in Supplyfrom Market Equilibrium