Demand+and+Supply+&+market+equilibrium

__ **Markets:** __ Microeconomics is primarily concerned with the decisions that are taken on a 'small' scale (relative to national and international decisions) by households (consumers, workers etc) and firms (businesses). Often these decisions involve the allocation of scarce resources. Markets are a way of bringing together (though often not in a physical sense) consumers and producers so the forces of supply and demand can interact.

__ **Demand:** __  Demand is derived from consumers wants or needs for goods and services. Essentially, in a market economy, if someone demands a product and has the ability to pay for it, then a producer will put together the necessary resources to make the product and satisfy demand. When following the notes on demand pay particular attention to the differences between **'Demand' and 'Quantity Demanded'**, also **'changes in demand' and 'changes in quantity demanded**'.
 * [[file:1. Market demand for goods and services.doc]]
 * [[file:Why does the demand curve slope downwards.docx]]
 * [[file:3. CHANGES IN DEMAND.docx]]
 * HL students- Quantitative analysis- demand: [[file:1. HL Linear Demand Functions-1.doc]]

__ Supply & Equilibrium: __  Again, with market supply, be careful in your use of the terms **'Supply', 'Quantity Supplied',** 'increase/decrease in supply' & increase/decrease in quantity supplied.
 * [[file:market supply.doc]]
 * [[file:changes in equilibrium price.doc]]
 * [[file:Worksheet- markets in action.docx]]
 * [[file:Worksheet- markets in action.docx]]

Test your understanding: Interactive exercise 1 Interactive exercise 2

Below are two mark schemes to two introductory data response questions which you should have the hard copy for. >
 * [[file:murphonomics/Mark scheme for bioenergy data response.doc|Mark scheme for bioenergy data response.doc]]
 * [[file:murphonomics/mark scheme for data response on supply and demand.doc|mark scheme for data response on supply and demand- Hurricane Ivan.doc]]
 * HL students -Quantitative analysis- supply:[[file:2. HL Linear Supply Functions.doc]]
 * HL students -Quantitative analysis- equilibrium: [[file:3. Equilibrium from supply and demand functions.doc]]
 * [[file:Student workpoint 3.3.pdf]]