📖 All Lessons
The complete Chapter 2 — every topic, table and diagram — split into 14 short lessons. Read them in order for the best results.
Key Terms to Know Before Studying
Easy meanings and daily-life examples of every word used in the chapter.
Introduction & How to Study
The one big question of the chapter and the best way to use this website.
Market Environment
What a market is, and how markets are grouped by area and by what is traded.
Demand & the Law of Demand
Meaning of demand, the law of demand, income and substitution effects, assumptions and the demand curve.
Market Demand & Exceptions
Individual vs market demand, horizontal summation, exceptions to the law of demand and its practical uses.
Movement Along vs Shift of the Demand Curve
How to tell a movement along the curve from a shift of the whole curve, and the factors that shift demand.
Supply & the Law of Supply
Supply vs stock, the law of supply, the supply curve, its assumptions and the factors that shift it.
Price Determination & Market Equilibrium
Market vs regulated price, equilibrium (QD = QS), surplus, shortage and the automatic price mechanism.
Shifts in Demand & Supply
The four basic shift cases with graphs, the golden memory trick and what happens when both curves shift.
Perishable vs Durable Goods, Reservation Price & Price Instability
Vertical supply for perishables, durable goods and stock, reservation price, hoarding, cartels and unstable farm prices.
Government Policies for Price Stability
How a buffer stock scheme works, its pros and cons, and the effects of price floors and ceilings.
Sticky Notes & One-Page Cheat Sheet
All the important facts and the 13-row cause-and-effect cheat sheet on one page.
E-Business and Market Price
What e-business is, its benefits for firms and customers, and seven factors deciding prices online.