Demand, Supply, and Equilibrium
- Use demand and supply to explain how equilibrium price and quantity are determined in a market.
- Understand the concepts of surpluses and shortages and the pressures on price they generate.
- Explain the impact of a change in demand or supply on equilibrium price and quantity.
- Explain how the circular flow model provides an overview of demand and supply in product and factor markets and how the model suggests ways in which these markets are linked.
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