Economics Flashcards

1
Q

Supply and demand

A

Outside basic economics demand can be influenced by among other things ,social proof,envy and jealousy,incentives,feedback loops, association, commitment and consistent tendency ,over influence from authority contrast and ideological biases.

A business earns expections profits only if it is low cost operator or if supply of its product or service is tight.

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2
Q

Margin of safety

A

Difference between waiting untill last minute and replacing it comfortably early gives us a margin of safety.sooner we replace more safety we will be having.

Just because we have built mos in one area of system that doesn’t mean system will not fail.

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