Elasticity of Demand
Well let's first start off with what Elasticity of Demand is, Elasticity of Demand is a measure of how consumers will react to a change in price.

Something could have either an elastic demand, where E>1 and demand is very sensitive to a change in price, or an inelastic demand where E< 1 and the product is a necessity, or it could be unitary elastic where E=1.

To find the Price Elasticity Demand (PED) three steps must take place:

Step 1
(New Quantity- Old Quantity)/ Old Quantity= % change(delta ) in quantity demanded

Step 2
(New Price- Old Price)/ Old Price= % change ( delta) in price

Step 3
(%(delta) in quantity demanded/ %(delta) in price) = PED

Then you would use the PED to determine the thing's elasticity.

Opportunity Costs and Productions Possibilities Graph

Opportunity Costs and Productions Possibilities Graph

Well first off let me start of by saying that Production Possibility Graphs have a lot to them but they actually aren't all that complicated. First let me start off by defining opportunity cost. Opportunity Cost is  the next best alternative, so if you can't have the ideal, what's the next best thing?

A Production Possibilities Graph shows alternative ways to use an economies resources, but first 4 assumptions must be made: there are two goods, there are fixed resources, there is fixed technology, and full employment of resource.


Types of Efficiency
There are two types of efficiency, allocative efficiency, which is the products that are being produced are the ones most desired by society, and productive efficiency, which is products are being produced in the least costly way.


Nitty Gritty of Production Possibilities Graph


Efficiency is that we're using resources in such a way as to maximize the production of goods and services whilst under-utilization is using fewer resources than an economy is capable of using.

Introduction to Economics

WHAT IS ECONOMICS?

Well first we have to start off with the two main types of economics which are macroeconomics,which is the study of the economy as a whole, and microeconomics, which is the study of specific units of the economy..

Macroeconomics consist of:

• supply and demand
• International Trade
• Minimum wage

Microeconomics consists of:

• Market Structures
• Business Organizations

Forms of Economics

Now that we know the different kinds of economics as a whole, now we can start focusing on the different forms of economics which are positive economics, which tries to describe the world as it is and it's very fact based, and normative economics, which tries to describe the world as it should be and is very opinion based.

Positive Example: The gross cost of automobile production has increased 20%.

Normative Example: Pollution is the most serious economic problem.

Here is a link with some additional examples: http://www.tutor2u.net/economics/reference/positive-and-normative-statements

Distinctions in Economics

Now I'm going to cover some distinctions that need to be made in economics such as capital goods vs, consumer goods, and scarcity vs. shortage. 

Capital goods involves the items used to create other goods, much like the oven used in a kitchen, while consumer goods are what people buy such as the pizza that is heated in that oven.

Scarcity is the most fundamental problem facing all societies, how to satisfy unlimited wants with limited resources, whilst shortage is that the quantity demanded is greater than the quantity provided.

Factors of Production

Now we come to factors of production, resources required to produce goods and services.

There are four parts to factors of production:

1) Land- natural resources

2) Labor-workforce

3) Capital- ( Human Capital/skills) (Physical Capital/tools and machinery)

4) Entrepreneurship