Page 19 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 2

Microeconomics II – The market system

Outcome

By the end of this session you should be able to:

 identify the equilibrium price in product or factor markets

 calculate the price elasticity of demand and the price elasticity of supply

 explain the determinants of the price elasticities of demand and supply

 calculate the effects of price elasticity of demand on a firm’s total revenue curve

 identify the influence of costs on the size and structure of the organisation

 explain the sources of market failures and the policies available to deal with
them

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 2 of your Study Text

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