Law of demandLaw of demandMarket demand as the sum of individual demandSubstitution and income effects and the law of demand Price of related products and demandChange in expected future prices and demandChanges in income, population, or preferencesNormal and inferior goodsInferior goods clarificationWhat factors change demand?Lesson summary: Demand and the determinants of demand
Market equilibriumMarket equilibriumChanges in market equilibriumChanges in equilibrium price and quantity when supply and demand changeChanges in equilibrium price and quantity: the four-step processLesson summary: Market equilibrium, disequilibrium, and changes in equilibrium
In this unit we explore markets, which is any interaction between buyers and sellers. We start by deriving the demand curve and describe the characteristics of demand. Next, we describe the characteristics of supply. Finally, we explore what happens when demand and supply interact, and what happens when market conditions change.