INFLATION AND OPPORTUNITY COST

INFLATION AND OPPORTUNITY COST

MATH 2

INFLATION

• Rate of increase in prices over a given period of time.

• The annual inflation rate in Colombia fell further to 1.88 percent in August of 2020 from 1.97 percent in the prior month and below market expectations of 2 percent.

LAW OF SUPPLY AND DEMAND

The law of demand says that at higher prices, buyers will demand less of an economic good. The law of supply says that at higher prices, sellers will supply more of an economic good.