What students need to learn:
Content
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Students should be able to:
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Additional Guidance Notes
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Determination of market equilibrium
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Explain equilibrium price and quantity and how they are determined.
Understand how the operation of market forces eliminates excess demand
and excess supply.
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Students should understand that shifts in demand and supply curves
will change the equilibrium price and quantity.
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Consumer and Producer surplus
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Distinguish between consumer and producer surplus.
Illustrate consumer and producer surplus on a demand and supply
diagram.
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Students should understand how changes in demand or supply might
affect consumer and producer surplus.
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Functions of the price mechanism
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Understand the rationing, incentive and signaling functions of the
price mechanism for allocating scarce resources.
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The price mechanism may be considered in the context of product,
commodity and labour markets.
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Post by Oscar Maldives.
