The following topics have been recently added under A Level Unit 2 (The price system and the micro economy)
Joint demand means two or more goods are demanded together. To consume one good, you need another good. In other words they are complements. For example, if the demand for tea increases, the demand for sugar will also increase. Here tea and sugar are complements.
Another good example of joint demand is, printers and ink cartridges. You might have noticed that some models of printers with very high functionality are sold at a very cheap price. You may think that the printers are of lower quality or produced with cheap labour.
The word equilibrium means at rest. Equilibrium in the market is the combination of price and quantity from which there is no tendency for buyers or sellers to move away. In a graphical representation, equilibrium means the intersection point of the supply and the demand curves.
Equilibrium Price or Market Clearing Price is the price at which the quantity demanded of a good equals the quantity supplied.
Goods and services can be classified into various categories based on their nature of scarcity.
A free good is available in abundance to people. Consumption of a free good does not arise in an opportunity cost.
Examples of free goods are air, water etc. Sometimes, a good maybe a free good in one country where as it may become an economic good in another country in which the consumers have to pay to use it.
This tutorial is posted under ‘Cambridge A Level Economics’.
Individual Demand means the goods and services demanded by an individual. Individual demand for a particular good means the demand for that good by a specific individual. Read More …
Tutorials have been uploaded to cover the syllabus contents of the Unit 1 of Cambridge A Level Economics (Basic Economic Ideas)
The tutorials cover the following topics:
- Scarcity, choice and resource allocation
- Different allocative mechanisms
- Production possibility curves
- Problems of transition
- The margin: decision making at the margin
- Positive and normative statements
- Ceteris paribus
- Factors of production: land, labour, capital, enterprise
- Division of labour
- Money: its functions and characteristics
I hope you find this work useful.
Cambridge O Level Unit 7 – Developed and Developing Economies: trends in
production, population and living standards
Topics covered in this unit
- Why some countries are classified as developed and others are not
- Absolute and relative poverty
- Policies to alleviate poverty>
- Factors affecting population growth
- The effects of changing size and structure of population on an economy
- Comparing developed and developing countries and regions within a country