Market Equilibrium and Price Mechanism
Students will analyze how the interaction of demand and supply determines equilibrium price and quantity, and how the price mechanism allocates resources.
Key Questions
- Analyze how signaling and incentive functions of prices coordinate the behavior of consumers and producers.
- Explain how shifts in consumer preference redefine the allocation of scarce resources.
- Evaluate who benefits and who bears the costs of price volatility in essential markets.
MOE Syllabus Outcomes
Suggested Methodologies
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