Types of Markets in Economics- There are two types of markets where factors of production (such as land, labor, and capital) and pr...
COURSE
Demand and Supply
CFAI understands that high quality investment advisors and portfolio managers need to have base competency in economic theory in order to value and forecast asset prices. Economics is the study of how people choose to use their resources. It is a branch of knowledge concerned with production, consumption and transfer of wealth. Economics consists of two broad areas of study, namely, macroeconomics and microeconomics. Microeconomics is concerned with how buyers and sellers interact with each other to determine the prices. In this we study the behaviour of individual households and firms to understand how they make decisions to allocate their limited resources.
This reading provides an introduction to the most important concepts in microeconomics related to the principles of demand and supply of goods and services.
Key Concepts:
- Demand and supply
- Equilibrium
- Efficient allocation of resources
- Elasticity
- Excess supply and demand
- Consumer and producer surplus
Course Downloads
Study Notes for CFA Level I Exam - Topics in Demand and Supply Analysis
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- The two fundamental principles in microeconomics are the principles of demand and supply of goods an...
- Supply is the ability and willingness of the firms to sell a specific quantity of a good or service ...
- ## Shifts in Demand Curve We learned that the demand function expressed the quantity demanded as a ...
- ### Aggregate Demand and Supply Curves Suppose the demand function for a product is Qd = 415 – 1.2P...
- Based on the [demand](https://financetrain.com/demand-function-and-demand-curve/ "Demand Function an...
- When the demand and quantity deviate from their equilibrium levels, the market forces will interact ...
- The equilibrium price for a product can also be determined using an auction where potential buyers p...
- The central governments use one of the following four methods to distribute a new issue of securitie...
- Typically, consumers value the goods they purchase by an amount that exceeds the purchase price of t...
- A government can impose various restrictions that will lead to an imbalance in the quantity and pric...
- Price elasticity of demand is the most common form of elasticity. It measures the change in quantity...
- Income elasticity of demand is the responsiveness of quantity demanded to changes in income. The inc...
- Cross price elasticity of demand refers to the responsiveness of demand of one good to changes in th...
LESSONS
Demand Function and Demand Curve
Supply Function and Supply Curve
Shifts in Demand and Supply Curves
Aggregating Demand and Supply Curves and Concept o...
Excess Demand and Excess Supply
Stable and Unstable Equilibrium
Types of Auctions
Four Methods of Distributing Government Securities
Consumer and Producer Surplus
Effects of Government Regulation on Demand and Sup...
Price Elasticity of Demand
Income Elasticity of Demand
Cross Price Elasticity of Demand
