2.1
Demand
Law of demand, Consumer choice, Demand curves, Market demand, Demand determinants, Movements and shifts
2.10
Market failure — asymmetric informationHL
Unequal information, Adverse selection, Moral hazard, Regulation, Information provision, Signalling, Screening
2.11
Market failure — market powerHL
Market structures, Profit maximization, Allocative efficiency, Oligopoly strategy, Competition policy
2.12
The market's inability to achieve equity
Free markets, Income and wealth inequality, Factor ownership, Circular flow, Equity
2.2
Supply
Law of supply, Supply curves, Market supply, Non-price determinants, Movements and shifts
2.3
Competitive market equilibrium
Market equilibrium, Price mechanism, Economic surplus, Allocative efficiency
2.4
Critique of the maximizing behaviour of consumers and producersHL
Rational choice, Behavioural biases, Choice architecture, Nudges, Alternative business objectives
2.5
Elasticity of demand
Responsiveness, PED, Total revenue, YED, Engel curves
2.6
Elasticity of supply
PES calculation, Degrees of elasticity, Supply diagrams, Determinants, Primary commodities
2.7
Role of government in microeconomics
Reasons for intervention, Price controls, Indirect taxes and subsidies, Regulation and provision, Consumer nudges, Stakeholder consequences
2.8
Market failure — externalities and common pool or common access resources
Social optimum, Externalities, Welfare loss, Common pool resources, Government intervention, International cooperation
2.9
Market failure — public goods
Non-rivalry, Non-excludability, Free riders, Direct provision, Contracting out
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