EJC_H2Econs_Topic2

1 © Eunoia Junior College Economics Department Topic 2: Demand & Supply Theme 2.1 Price Mechanism and its Applications How to use this set of lecture notes? 1) BEFORE LECTURES – UNDERSTANDING CONTENT - Reference your notes against your H2 syllabus. Mark out the key concepts so that you know what you MUST know - Read your notes ahead so that you can focus on listening and capturing additional notes during lectures 2) During lectures – APPLYING CONTENT - Bring your hard copy notes along, and use your PLDs to refer to the lecture slides concurrently - Capture additional notes, especially the real-world examples where you can note down how concepts are applied and how economic analysis are developed in varying contexts - You should make use of a notetaking/consolidation tool to take notes during lessons and to consolidate your learning at timely junctures. Examples are MIRO, Notion, Good Notes, Notability, Microsoft One Note, KAMI, and etc. The choice is yours! 3) After Lectures – TUTORIAL PREPARATION to use content flexibly to show application, analysis and evaluation skills - Revise concepts relevant for the case study and essay questions - Refer to the notes and use it flexibly to prepare your answers to meet question requirements. Pure memorisation will not work as it does not involve deep understanding. - Do share your notes with your friends to multiply learning!

2 © Eunoia Junior College Economics Department Introduction to Price Mechanism and its Applications CONTENTS 1. Price Mechanism and its Functions 1.1 The role of price mechanism in resource allocation 2. Demand and Supply Model 2.1 Rationale for the use of models in Economics 2.2 Features of the demand and supply model 2.3 Assumptions of the demand and supply model 3. Demand Theory 3.1 Definition of demand 3.2 Law of Demand 3.3 Demand curve 3.4 Explaining the downward-sloping shape of the demand curve 3.5 Individual demand schedule 3.6 Market demand schedule 3.7 Market demand curve 3.8 Change in quantity demanded vs. Change in demand 4. Supply Theory 4.1 Definition of supply 4.2 Law of supply 4.3 Supply curve 4.4 Explaining the upward-sloping shape of the supply curve 4.5 Individual supply schedule 4.6 Market supply schedule 4.7 Market supply curve 4.8 Change in quantity supplied vs. change in supply 5. Market Equilibrium 5.1 Definition 5.2 Price adjustment process 6. Factors Affecting Demand 7. Factors Affecting Supply 8. 9. Impact on Market due to Simultaneous Shifts in Demand and Supply Inter-Market Relationships Summary Essential Questions: 1. How do consumers and producers make choices about the use of limited resources amongst unlimited wants? 2. How does the market system assist in the allocation of limited resources and distribution of goods and services? 3. What are the factors that affect the market, and what are the