Describe the importance of recognizing the demand and supply in the market for different stakeholders.
Describe the how supply and demand factors the optimum equilibrium
Recognize the equilibrium price and quantity from given supply and demand graph
Draw the diagram that describes the relationship between demand and supply.
Define the concept of ‘Optimum Equilibrium’ and its position on the demand and supply diagram.
Define shortage (demand exceeds supply) and surplus (supply exceeds demand), and each’s impact to the economics
Describe the definition of substitude goods, such as:
Address the questions about the impact of substitutes on prices.
Memorize and describe the concepts of:
Substitutes are goods that satisfy a similar need or desire.
An increase in the price of a good will increase demand for its substitute, while a decrease in the price of a good will decrease demand for its substitute.
Define the definition of complementery goods, such as:
Address questions about the impact of complementery goods on prices.
Memorize and describe the concept of:
The demand for a good decreases, if the price of one of its complements rises. The demand for a normal good increases if income increases. The demand for an inferior good decreases if income increases.
