1.1.3 The Demand Curve

Introduction:

Before we look at demand and Supply we need to put these 2 important concepts into context.

We have already seen that economics is about trying to allocate scarce resources efficiently, but how do we do that? Different economic systems do it in different ways. For example a Planned Economic System is where the Government decides who, how and to whom.

A market system is where the market decides these important questions. But what do we mean by a market system?

Definition: A market is where there are both supply of and demand for a good or service 

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