Hey y’all! Here we are reading and discussing Sections C.1-C.1.1 of AFAQ this week! We still take it slow, so we might do C.1 (and C in general) in a slower pace until we start to catch up again.

Edit: Here we are reading and discussing Section C.1 of AFAQ the following 4(!) weeks! We are taking it slow until we start to catch up again. I will update the title each week and I will re-ping you here each week.

Happy reading!

There is also an EPUB version of AFAQ, courtesy of @[email protected]: here

If you’d like to join, please comment and we’ll ping you next post.

Link to last week’s read: https://lemmy.dbzer0.com/post/55295947

PS. Feedback request: How did you find last week’s reading pace? Fast/Slow/OK/etc.?

  • Blastboom Strice@mander.xyzOPEnglish
    1·
    4 days ago

    So, I was having some trouble with definitions, so I made an entry in my notes (hope all these terms don’t hurt eyes):

    Definitions of capitalist economics terms

    • Downward sloping demand curve:
      • As the price increases, quantity demanded decreases
      • X axis: Quantity demanded
      • Y axis: Price of product
    • Price elasticity of demand of a product:
      • A measure of how sensitive the quantity demanded is to its price
        • Higher elasticity means higher sensitivity
    • Rising supply curve:
      • As the price of a commodity increases, the quantity supplied will increase
      • X axis: Quantity demanded
      • Y axis: Price of product
    • General equilibrium theory:
      • Seeks to prove that the interaction of demand and supply will result in an overall general equilibrium:
        • A market in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price
        • Junction points of demand and supply curves (they are supposed to be sloping inversly)
    • Perfect competition:
      • The ideal conditions (in theoretical models) of perfect competition, under which a market will reach a general equilibrium
    • Horizontal demand curve:
      • A change in price leads to a significant shift in demand
        • Huge increase in quantity of demand with virtually no drop in price
      • Means demand curve is perfectly elastic
    • Rational expectations theory:
      • Seeks to infer the macroeconomic consequences of individuals’ decisions based on all available knowledge
      • It assumes that individuals’ actions are based on the best available economic theory and information