Lecture Note : Chapter 2 - The Basics Of Supply and Demand.

One of the best ways to appreciate the relevance of economics is to begin with the basics of supply and demand. Supply demand analysis is a fundamental and powerful tool that can be applied to a wide variety of interesting and important problems. To name a few:

1. Understanding and predicting how changing world economic conditions affect market price and production.
2. Evaluating the impact of goverment price controls, minimum wages, price supports and production incentives.
3. Determining how taxes, subsidies, tariffs and import quotas affect consumers and producers.

LECTURE NOTE CHAPTER 2.