Pricing Unit - Pricing Supply Demand and Prices work...

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Pricing Supply, Demand, and Prices work together in the marketplace to create a balance. Just as a road guides your steering, Use these objectives to guide your study of this unit. Objectives 1. Combining Supply and Demand 1.1.Explain how supply and demand create balance in the marketplace 1.2.Compare a market in equilibrium with a market in disequilibria 1.3.Identify how the government sometimes intervene in markets to control prices 1.4.Analyze the effects of price ceilings and price floors. 2. Changes in Market Equilibrium 2.1. Describe how prices change in the market 2.2. Explain how a market reacts to a change in supply by moving to a new equilibrium 2.3. Explain how a market reacts to a change in demand by moving to a new equilibrium 3. The Role of Prices 3.1. Analyze the role of prices in a free market system 3.2. List the advantages of a price-based system over rationing. 3.3.Explain how a price-based system leads to wider choice of goods and more efficient allocation of resources.
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