Scarcity, Choice & the Market Mechanism

What this note covers

1. Relative scarcity and opportunity cost: why economics exists
2. The production possibility frontier: modelling choice, cost and efficiency
3. The market mechanism: how relative prices allocate resources
4. Demand: the law of demand, movements along and shifts of the curve
5. Supply: the law of supply, movements along and shifts of the curve
6. Market equilibrium and price discovery: a worked application

6 sections · 14 key terms & formulas · 6 common mistakes