Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can define market equilibrium and explain why the price stays there until something shifts a curve. (Guide: “What equilibrium means”)
- I can define a surplus and a shortage and say whether each happens above or below the equilibrium price. (Guide: “Disequilibrium: surpluses and shortages”; Practice Q1)
- I can tell a movement along a curve from a shift of a curve, and say which one happens while the price adjusts. (Guide: “How prices restore equilibrium”; Practice Q2)
Calculation
- I can find the equilibrium price and quantity from a demand and supply schedule. (Guide: Worked example 1; Practice Q5(a), Q7(a))
- I can calculate the size of a surplus or shortage by comparing Qd and Qs at the same price. (Guide: Worked example 1; Practice Q1, Q5(b), Q7(c))
- I can build a new schedule after a shift and find the new equilibrium. (Guide: Worked example 2; Practice Q5(c), Q7(b))
Graphing
- I can draw a correctly labelled supply and demand graph with the equilibrium price and quantity marked on the axes. (Guide: “Showing a change on a graph”; Practice Q6(a))
- I can show a shift of demand or supply on a graph and label the new equilibrium P₂ and Q₂. (Guide: Figure 2; Practice Q6(b))
Reasoning
- I can explain how a surplus or shortage makes the price adjust until the market clears. (Guide: “How prices restore equilibrium”; Practice Q5(d), Q6(c))
- I can decide which curve a change affects and predict the effect on equilibrium price and quantity. (Guide: “Changes in equilibrium: when a curve shifts”; Practice Q3)
- I can analyse two shifts at once, saying which variable is certain and which is indeterminate, and why. (Guide: Worked example 3; Practice Q4, Q6(d), Q7(d))
All ticked? You have finished this unit. Move on to Unit 2, Economic Indicators and the Business Cycle, starting with Topic 2.1, The Circular Flow and GDP, or return to the course roadmap.