EconomicsCode 9708
The interaction of demand and supply
What this topic asks you to be able to do
- the way market equilibrium and disequilibrium are defined
- the impact that shifts of the demand and supply curves have on equilibrium price and quantity
- how separate markets are linked, covering joint demand (complements), alternative demand (substitutes), derived demand and joint supply
- the roles price plays in allocating resources: rationing; signalling, by transmitting preferences; and incentivising