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2.4. Price determination

Syllabus
0455–2027–2028
Topic
2.4
Level
—

2.4.1—Price mechanism

  • how the price mechanism provides answers to the basic resource allocation decisions of what, how and for whom to produce

2.4.2—Market equilibrium

  • equilibrium price and equilibrium quantity in a market:
  • definition of market equilibrium
  • interpretation of equilibrium using demand and supply schedules
  • drawing and interpretation of equilibrium using demand and supply curves

2.4.3—Market disequilibrium

  • disequilibrium prices and quantities:
  • definition of market disequilibrium
  • interpretation of disequilibrium using demand and supply schedules
  • drawing and interpretation of disequilibrium using demand and supply curves
  • shortages (demand exceeding supply) and surpluses (supply exceeding demand)

Objective notes

3 learning objectives
ConceptIGCSE Economics