Topic 6: Supply & Demand

Understand the law of demand and the law of supply
Distinguish what causes a movement along supply and demand curves from the factors shifts supply and demand curves.
Describe substitutes, complements, normal goods and inferior goods.
Identify when shortages and surpluses exist and predict what happens to the market price when they exist
Determine the equilibrium price and quantity.
Show how changes in supply and demand affect price and quantity traded in markets