2.6.1 Causes of Price Changes Price changes occur due to shifts in demand and/or supply in response to changes in market conditions. These changes disrupt equilibrium and lead to a new price and quantity. Key Causes of Demand Shift (Right …
2.5.1 Market Equilibrium Market Equilibrium occurs when quantity demanded equals quantity supplied at a particular price. This price is known as the equilibrium price, and the quantity is the equilibrium quantity. Key Definitions: Equilibrium Price: The price at which the …
Lesson Objectives Definitions of Supply Price and Supply Individual and Market Supply Conditions of Supply Definitions of Supply Supply refers to the willingness and ability to sell a product. Remember, production is not the same as supply. Production is all …
Lesson Objectives Definition of Demand Price and Demand Individual and Market Demand Conditions of Demand Definition of Demand The willingness and ability to buy a product is called demand Remember, demand is seen from the consumer’s perspective, NOT the producer’s …
Lesson Objectives The Market System Key Resource Allocation Decisions Introduction to The Price Mechanism The Market System What is the market system A market system is where the the forces of demand and supply determine the price of the product …
Lesson Objectives Microeconomics Macroeconomics Microeconomics It deals with the individual basic level of the economy Thus, it is small scale Usually, a particular sector of the economy is considered The focus is on individual economic institutions For example banks or …
Lesson Objectives Definition of PPC Points Under, On and Beyond a PPC Movements Along A PPC Shifts On A PPC Definition of PPC A production possibility curve shows the graphical representation of opportunity cost between the production of two categories …
Opportunity Cost Opportunity cost means the cost of a decision in terms of the next best opportunity given up to take this decision It is ONLY the next best decision If I can do 4 things in this order in …
Factors of Production Factors of production are economic resources used in production Land – all natural resources like animals in forest, natural gas etc It includes the physical land and the natural resources that are present in the land The …
Lesson Objectives Finite Resources and Unlimited Wants Economic and Free Goods Finite Resources and Unlimited Wants Needs is anything that is necessary for living. Without it, a normal human can not survive. For example, food, shelter and clothing. However, these …