2.1 Markets

Definition of markets with relevant local, national and international examples http://opengecko.com/ib-economics/markets/

Brief descriptions of perfect competition, monopoly and oligopoly as different types of
market structures, and monopolistic competition, using the characteristics of the number
of buyers and sellers, type of product and barriers to entry

Importance of price as a signal and as an incentive in terms of resource allocation http://opengecko.com/ib-economics/markets/


Definition of demand http://opengecko.com/ib-economics/introducing-demand/
Law of demand with diagrammatic analysis http://opengecko.com/ib-economics/introducing-demand/
Determinants of demand http://opengecko.com/ib-economics/introducing-demand/

Fundamental distinction between a movement along a demand curve and a shift
of the demand curve

Exceptions to the law of demand (the upward-sloping demand curve) Higher level extension topic
  • ostentatious (Veblen) goods
  • role of expectations
  • Giffen goods


Definition of supply http://opengecko.com/economics/supply/
Law of supply with diagrammatic analysis http://opengecko.com/economics/supply/
Determinants of supply http://opengecko.com/economics/supply/
Effect of taxes and subsidies on supply  

Fundamental distinction between a movement along a supply curve and a shift
of the supply curve


Interaction of demand and supply

Equilibrium market clearing price and quantity http://opengecko.com/economics/supply-and-demand-interacting-the-equilibrium-price/

Diagrammatic analysis of changes in demand and supply to show the adjustment
to a new equilibrium


Price controls

Maximum price: causes and consequences http://opengecko.com/economics/the-effects-of-price-controls/
Minimum price: causes and consequences http://opengecko.com/economics/the-effects-of-price-controls/
Price support/buffer stock schemes http://opengecko.com/economics/the-effects-of-price-controls/
Commodity agreements