MGEA02H3 Final: A02_Study Questions_Topic 2
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MGEA02H3 Full Course Notes
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Mgea02 introduction to microeconomics: a mathematical approach. How markets allocate resources through buying and selling of goods and services. Shifts in demand and shifts in supply and how they affect equilibrium price and quantity traded. The key role of prices in allocating resources to different uses. Judgement of the allocative function of free markets. Price ceilings, price floors and the allocative functions of markets. Recommended reading: chapter 3 supply and demand (pp. Algebra of demand, supply and equilibrium (p. 103-108). And, chapter 5 price controls and quotas: meddling with markets (pp. To understand how the adjustment of prices rations the available supply amongst potential buyers. Do all the check your understanding questions within the parts of the text in the assigned readings. Answers for these are at the back of the textbook. Chapter 3: q1, 2, 7, 9, 10, 12, 15, 16, 18.
