Market equilibrium

How do consumers and producers make choices in trying to meet their economic objectives?

Conceptual understandings

Interaction between consumers and producers in a market is the main mechanism through which resources are directed to meet the needs and wants in an economy.
Consumer and producer choices are the outcome of complex decision-making.
Welfare is maximized if allocative efficiency is achieved.
Constant change produces dynamic markets.

2.3 Aims.pdf

2.3 Extra Essays.pdf

2.3 Key Concepts.pdf

2.3 Crib.pdf

What is market equilibrium?

read iPencil: my family tree

read the economics of a PoW camp

2. Shortages and Surpluses (aisc)

The economics of toilet paper (aisc)

TASK Up and Down Supply and Demand (Intro to Econ) (aisc)

How does price provide signals and incentives?

3. The importance of signals and incentives (aisc)

How do economists model community surplus?

Consumer and Producer Surplus (aisc)

What is allocative efficiency?

4. Allocative efficiency (aisc)

Higher Level Only

Calculating consumer and producer surplus

Calculating consumer and producer surplus (aisc)

In the news: some practice questions

Help me update these news challenges. It'll be great prep for your IA work

Shifts in Supply or Demand Interactive Practice (3 Sets)New interactive practice tool: Have your students test their knowledge on whether an event causes a shift in the demand curve or a shift in the supply curve.

Holiday Edition: Shifts in Supply or Demand Interactive PracticeTis the season for interactive practice! Have your students test their knowledge on whether holiday-themed scenarios cause a shift in the demand curve or a shift in the supply curve. Perfect to use when you’re teaching equilibrium or just having your students review old concepts.

Consumer and Producer Surplus Interactive PracticeHow are consumers and producers affected by changes in market prices? This set of interactive questions uses engaging examples to help students identify changes in consumer and producer surplus on a supply and demand graph. Deadweight loss is also illustrated.

Theory of Knowledge Connections

Is the assumption of rational consumer choice realistic?

Can laws in economics, such as the law of demand and the law of supply, have the same status as laws in the natural sciences?

Can the use of empirical evidence ever allow us to arrive at the truth about the real world?

What practical problems does economics try to solve?

Alfred Marshall

Born: July 26, 1842, London, United Kingdom

Died: July 13, 1924, Cambridge, United Kingdom

Most famous works/contributions;

Principles of Economics, 1890
utility analysis and marginal utility
developed theory of price and supply and demand models
elasticities, consumer and producer surplus
internal and external economies of scale

Alfred Marshall (aisc)

Journal Articles

Groenewegen, Peter D. “Alfred Marshall and the History of Economic Thought.” Quaderni Di Storia Dell'economia Politica, vol. 9, no. 2/3, 1991, pp. 59–87. JSTOR, www.jstor.org/stable/43317508

Hodgson, Geoffrey M. “The Mecca of Alfred Marshall.” The Economic Journal, vol. 103, no. 417, 1993, pp. 406–415. JSTOR, www.jstor.org/stable/2234779