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      • Introduction to Economics >
        • The nature of economics
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        • Businesses
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        • Demand
        • Supply
        • Market equilibrium
        • Market structures
      • Labour Market >
        • Demand and supply of labour
        • Labour market trends
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      • H1: Social and Cultural Continuity and Change
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      • H3: Equality and Difference
    • Geography (old syllabus) >
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TOPIC 3 MARKETS

Demand
Supply
Equilibrium
Government
Market Structures


​The role of the market

  • determining solutions to the economic problem
  • the importance of relative price in reflecting opportunity costs in the goods and services and factor markets

Demand and supply

Demand
  • law of demand, individual and market demand, the demand curve
  • factors affecting demand – price, income, population, tastes, prices of substitutes and complements, expected future prices
  • movements along the demand curve and shifts of the demand curve
Supply
  • law of supply, individual and market supply, the supply curve
  • factors affecting supply – price/cost of factors of production, prices of substitutes and complements, expected future prices, number of suppliers, technology
  • movements along the supply curve and shifts of the supply curve
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
Alternatives to market solutions – the role of government
  • ceiling prices, floor prices
  • market failure – merit goods, public goods, externalities
Price elasticity of demand
  • significance of price elasticity of demand – market research
  • price elasticity
             – elastic, inelastic and unit elastic
             – calculation of elasticity using total outlay method
  • factors affecting elasticity of demand
             – necessities and luxuries
             – existence of close substitutes
             – proportion of income spent on the good
             – the length of time since a price change

Price elasticity of supply
  • elastic supply, inelastic supply
  • factors affecting elasticity of supply (no calculations are required)

Variations in competition

Market structures
  • pure competition
  • monopolistic competition
  • oligopoly
  • monopoly
(Diagrams using revenue and costs for the market models are not required.)
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  • Home
  • About
    • About
    • Education Blog
    • Writing Blog
  • Case Studies
  • Courses
  • HSIE Resources
    • HSC Business Studies >
      • Operations >
        • Role of operations management
        • Influences
        • Processes (overview) >
          • Inputs
          • Transformation processes
          • Outputs
        • Strategies
      • Marketing >
        • Role of marketing
        • Influences
        • Process
        • Strategies
      • Finance >
        • Role of Financial Management
        • Influences
        • Processes
        • Strategies
      • Human Resources >
        • Role of human resource management
        • Influences
        • Processes
        • Strategies
        • Effectiveness
    • Preliminary Business Studies >
      • Nature of Business >
        • Role of business
        • Types of businesses
        • Influences
        • Business growth and decline
      • Business Management >
        • Nature of management
        • Management approaches
        • Management process
        • Management and change
      • Business Planning >
        • SMEs
        • Influences
        • Business Planning Process
        • Critical Issues
    • Economics >
      • Introduction to Economics >
        • The nature of economics
        • The operation of an economy
      • Consumers and Businesses >
        • Businesses
      • Markets >
        • Demand
        • Supply
        • Market equilibrium
        • Market structures
      • Labour Market >
        • Demand and supply of labour
        • Labour market trends
      • Economic Issues >
        • Economic growth
        • Unemployment
        • Inflation
        • External Stability
        • Distribution of Income and Wealth
        • Environmental Sustainability
    • Society and Culture >
      • Course Framework
      • Research Methods
      • P1: Social and Cultural World
      • P2 Personal and Social Identity
      • P3: Intercultural Communication
      • PIP
      • H1: Social and Cultural Continuity and Change
      • H2: Popular Culture - Social Media
      • H3: Equality and Difference
    • Geography (old syllabus) >
      • Coastal Management
      • Urban Growth and Decline
      • Human Rights
  • Contact