ECON 106 Lecture 5 Outline of Last Lecture I. Essence of a MarketII. Two Basic ElementsIII. MarketIV. Coincidence of Wants Outline of Current Lecture I. Economic IncomesA. ConsumersB. ProducersC. ProcessesII. Economic Relationships Current LectureEconomic Incomes - Nominal Income – income measured as a given number of dollars - Real Income – income measured as the quantity of goods and services a given nominal income will exchange forA. Consumers- Owners of productive resources B. Producers- Users of productive resources C. Processes - Consumers  factors of production  producers (real)- Producers  income  consumers (nominal)- Producers  goods & services  consumers (real)- Consumers  expenditures  producers (nominal)Economic Relationships - Causal (cause/effect) relationship – anything that affects and effect- Negative/Indirect/Inverse relationship – things move in different directions- Positive/Direct relationship – things move in the same direction - Demand Relationship – as price moves in one direction, the quantity that the market is willing and able to purchase moves in the opposite direction, all else being unchanged (fixed/constant) These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Demand Schedule – shows the relationship between price and the quantity demanded= Delta= A change P = A change in price QD = A change in quantity