Markets and demand
One of the first topics that we look at in the Microeconomics section of the syllabus is markets and how they function. We have already seen that there are a limited number of resources available to satisfy the unlimited wants and needs that we have. As a result we have to answer the question of what to produce? how much to produce? and who to produce it for? In order to do this we use the markets and price to communicate about what changes need to be made. In order to understand about markets and prices we need to study demand and supply to see how prices are set and why they change. We will start with demand, before moving onto supply and then putting the 2 together to see how the market as a whole works.