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• A perfectly inelastic curve, which would be a vertical line, is impossible
• Almost everything has a substitute
• Checks are always split (ex: health care)
• 50 % expenditures government
• 40 % expenditures insurance
• Income and consumption are different from prices and consumption
• Cross-price Elasticity
• pizza price increases, burrito quantity demanded increases"+" substitutes
• pizza price increases, burrito quantity demanded decreases"-" complements
• Income Elasticity: % change in quantity demanded / % change in income
• > 0 = "normal goods"
• < 0 = "inferior goods" 
• Example: Income = $50,000 Environment spending= $500 Elasticity for environment= 2
• income increases by 20%
• environment spending increases by 40%
• $500 + $200 
• 40%(change in quantity demanded) / 20%(change in income) = 2(income elasticity)
• Producers produce more when quantity demanded rises
• they primarily care about the relative opportunity cost
• mountain bike maker vs table maker
• the inputs needed to make the mountain bike have more foregone opportunities which is why mountain bike inputs have more value
• Other costs matter besides price
• Relative Opportunity Costs greatly matter in decisions
• What are Costs?
• they are anything that consumes resources
• however They Have To be Attached to Two Important Factors
• Actions
• a sacrifice must be incurred
• "what does it cost to obtain a college education" is not a complete statement
• To Whom
• "what is the cost of you obtaining a college education" is a complete statement
• distinguishes relative opportunity cost
• Talent vs Opportunity
• the person with more foregone opportunities is more valued (paid more) than someone who is more talented but has less foregone opportunities 
• skilled workers are paid more than unskilled workers only if their skills are valued somewhere else
• Costs and Supply: Quantity Supplied vs Law of Supply
• quantity supplied= amount of a good that firms are willing and able to produce at a particular price
• law of supply = when the price of a good rises, seller will produce more of the good