The Mechanics of the Market · Supply & Demand

Price Signals and Equilibrium

Understanding how supply and demand curves interact to find a market clearing price.

Key Questions

  1. 1How does a sudden shortage of a resource affect the price of related finished goods?
  2. 2What role do prices play in signaling to producers what they should make more of?
  3. 3Why might a government intervene to set a maximum price on essential goods?

ACARA Content Descriptions

AC9HE7K02
Year: Year 7
Subject: Economics & Business
Unit: The Mechanics of the Market
Period: Supply & Demand

Suggested Methodologies

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