Supply and demand model

Key concept indicators

• Recognise that consumer choices affect the demand for a good or service.
• Calculate and illustrate market demand which is the sum of the individual consumer demand (schedules) in the market.
• Recognise that producer choices affect the supply of a good or service.
• Calculate and illustrate market supply which is the sum of the individual producers supply (schedules) in the market.
• Recognise government choices (such as, price controls, direct and indirect taxes, and subsidies) affect market equilibrium.
• Identifies market equilibrium, excess supply and excess demand on a supply and demand model.
• Illustrate the effect of consumer, producer, and government choices on the supply and demand model and use this information to support explanations of how these choices affect market equilibrium and the flow on effects for different sectors of society.
• Explain how consumer, producer, and government choices affect the market equilibrium and the flow on effects of this for different sectors of society.

Possible context elaboration

Content in preparation.

Last updated May 9, 2013

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