Course review
Review each learning objective in this topic, then open its concept explanation or question set.
Learning objective
• Demand and supply curves form market equilibrium • Equilibrium price and quantity coordinate buyers and sellers • Diagram: market equilibrium
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Shifts in demand or supply create new market equilibrium • Excess demand causes shortages; excess supply causes surpluses • Diagram: changes in equilibrium and the role of the price mechanism
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Learning objective
• The price mechanism allocates resources through signalling and incentives • Rationing is another function of the price mechanism for scarce goods and services
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Learning objective
• Consumer surplus and producer surplus measure welfare gains in a market • Social or community surplus combines consumer and producer surplus • Diagram: consumer surplus and producer surplus as social or community surplus
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Learning objective
• Allocative efficiency occurs at competitive market equilibrium when social surplus is maximized • Marginal benefit equals marginal cost at the allocatively efficient output • Diagram: social or community surplus maximized at competitive market equilibrium
Start with the concept explanation, then practise to create mastery evidence.
Learning objective
• Calculate consumer surplus and producer surplus from a diagram
Start with the concept explanation, then practise to create mastery evidence.