Overview
The interaction between the forces of demand and supply in determining the market price. The effect of changes in demand/supply on the equilibrium price and quantity. Elasticity of demand and supply with the use of curves and mathematical expressions. The concept of elasticity to analyse price policy of firms as maximum and minimum price control.
What you'll learn
- Determination of equilibrium price and quantity.
- Effect of changes in demand and supply on the equilibrium price and quantity.
- Types of demand and supply e. g. Joint demand, joint supply, etc. Concept of elasticity and its application.
- Simple application of price theory e.g. Minimum and maximum price legislation.