TOPIC 3: MARKETS

Market Equilibrium

Market price

• market equilibrium – using diagrams
  
• movement to equilibrium
  
• effects of changes in supply and/or demand on equilibrium market price and quantity through the use of diagrams
  
• effects of changing levels of competition and market power on price and output (see market structures)
  

Alternatives to market solutions – the role of government

• ceiling prices, floor prices
  
• market failure – merit goods, public goods, externalities

READ: Finding an equilibrium price (tutor2u)
WATCH: Market equilibrium (YouTube clip by mjmfoodie)

READ: Government intervention in the market (tutor2u)
WATCH: Price Floors and Price Ceilings (YouTube clip by mjmfoodie)