Question: Objectives: Given the basic economic problem of scarcity, apply opportunity costs and markets, and examine how the price mechanism reconciles changes to either/both function(s), resulting in a new market equilibrium price and level of output.
Enablers: · Examine the determinants of demand and supply.
· Differentiate between a change in quantity demanded/quantity supplied (a movement along a fixed demand curve) and a change in demand/change in supply (a movement of the entire demand curve).
· Illustrate how market equilibrium is reached.
· Illustrate the movement of the supply and demand curves and the resulting new equilibrium price and quantity.
· Evaluate the factors that influence price elasticity of demand and supply.