In this module, you are required to learn the basic theories of supply and demand. Supply and demand are the forces that make the market function. You will also study the concept of elasticity. Elasticity is the measure of responsiveness of one variable from a change in another variable. In this course, we focus on the price elasticity of demand. It is the ratio of the percentage change in quantity demanded to the percentage change in a price of goods. Essentially, it measures how consumers respond to changes in price. Please read the following materials:
Required Materials
Economic Concepts: Demand, Supply, and Elasticity
http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12226
Interactive Tutorial
Economic Concepts: Demand, Supply, and Elasticity
http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12262
Podcast
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