22 May Microeconomics
minimum a page each not including initial draft. APA
Objectives
Given the basic economic problem of scarcity, apply opportunity costs and markets, and examine how the price mechanism reconciles changes to either/both function(s), resulting in a new market equilibrium price and level of output.
Enablers
· Examine the determinants of demand and supply.
· Differentiate between a change in quantity demanded/quantity supplied (a movement along a fixed demand curve) and a change in demand/change in supply (a movement of the entire demand curve).
· Illustrate how market equilibrium is reached.
· Illustrate the movement of the supply and demand curves and the resulting new equilibrium price and quantity.
· Evaluate the factors that influence price elasticity of demand and supply.
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