Economics: The Market - Prices, Consumers and Firms

<p>Do you want to understand how a market economy works, how prices are determined, and how resources are allocated in society? Through theory and practical examples, you will gain insight into key economic relationships and develop a deeper understanding of our society.</p><p>The course provides you with an understanding of economic decision-making at both individual and firm level. You will learn to analyse how markets function, how prices are determined, and how resources are allocated.</p><p>The central framework of the course is the market model, in which we examine supply and demand as well as the significance of the equilibrium price. We will also study consumer behaviour and how consumers may benefit from a free market. In addition, we consider firms’ production decisions under different market structures, such as perfect competition and monopoly. Through theoretical models and practical applications, you will gain tools to understand economic relationships in everyday life and in society at large.</p><p>The course is structured around the following components:</p><ul><li>Supply and demand: how prices are determined in competitive markets</li><li>Consumer theory: how individuals make rational choices under limited resources and the importance of marginal utility</li><li>Production, costs, and profits: firms’ strategies for maximising profit</li><li>Market structures: differences between perfect competition, monopoly and oligopoly</li></ul>