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Economic theory

Markets

Demand, supply, elasticity and the price a market settles at.

Start: Demand

The 11 modules

Each module teaches one idea: a definition, how it works, and questions through the page. Take them in any order.

1DemandTell demand from quantity demandedConcept · 6 min · Free 2SupplyTell supply from quantity suppliedConcept · 6 min 3How a market finds its priceExplain how a market moves to its equilibrium priceHow it works · 6 min 4A shift in demandTell a shift in demand from a movement along the curveDiagram · 7 min 5A shift in supplyTell a shift in supply from a movement along the curveDiagram · 8 min 6Elastic and inelastic demandTell elastic demand from inelastic demandTell them apart · 6 min 7Calculating price elasticity of demandWork out a price elasticity of demand from two percentagesCalculation · 6 min 8Price elasticity of supplySay what makes a supply elastic or inelasticConcept · 7 min 9Income and cross elasticityTell a normal good from an inferior one, and a substitute from a complementTell them apart · 7 min 10Consumer and producer surplusRead consumer and producer surplus off a diagramDiagram · 5 min 11What a price does: rationing, signalling, incentiveExplain the three jobs a price does in a marketHow it works · 6 min