In this topic you will study the following:

Read Icon.png Reading

For this topic you will need to work through pages 24 to 27 in your course book.

Key Points

Please pay attention to how resources are allocated through the market mechanism, involving the concepts of demand and supply and how they set the equilibrium (“market”) price.
You will also learn about the concept of disequilibrium and how, through the pricing mechanism, markets can achieve a new equilibrium.
We will also see how governments influence decision-making and how their levels of involvement are different in different countries, including the idea of a mixed economy.

Links

Now watch this video on supply and demand.