Chapter 1: Market Forces of Supply and Demand

In this section

• Introduction to Supply and Demand
  Introduction to Supply and Demand (CFA Level 1): Key Concepts in Supply and Demand, Demand, and Supply. Exam-focused explanations with key terms and takeaways.
• Equilibrium, Surplus, and Shortage
  Equilibrium, Surplus, and Shortage (CFA Level 1): Defining Equilibrium: Where Supply Meets Demand, Why Equilibrium Matters, and Key Concepts and Terminology. Key definitions, formulas, and exam tips.
• Consumer and Producer Surplus
  Consumer and Producer Surplus (CFA Level 1): Defining Consumer Surplus, Defining Producer Surplus, and Graphical Representation and Key Insights. Key definitions, formulas, and exam tips.
• Market Efficiency and Deadweight Loss
  Market Efficiency and Deadweight Loss (CFA Level 1): Defining Efficiency and Surplus, Economic Efficiency, and Total Surplus and Its Components. Key definitions, formulas, and exam tips.
• Elasticities (Price, Income, Cross)
  Elasticities (Price, Income, Cross) (CFA Level 1): Price Elasticity of Demand, Main Determinants of Price Elasticity of Demand, and Price Elasticity of Demand and Total Revenue. Key definitions, formulas, and exam tips.
• Government Intervention (Price Floors, Price Ceilings, Taxes, Subsidies)
  Government Intervention (Price Floors, Price Ceilings, Taxes, Subsidies) (CFA Level 1): Price Floors, Key Mechanism, and Price Ceilings. Key definitions, formulas, and exam tips.
• Demand and Supply Shifters
  Demand and Supply Shifters (CFA Level 1): Understanding Demand Shifters, Changes in Consumer Income, and Prices of Related Goods: Substitutes and Complements. Key definitions, formulas, and exam tips.
• Common Resources and Public Goods
  Common Resources and Public Goods (CFA Level 1): Rivalry and Excludability, Common Resources, and Tragedy of the Commons. Key definitions, formulas, and exam tips.
• Market Failures and Asymmetric Information
  Market Failures and Asymmetric Information (CFA Level 1): Defining Market Failure, Externalities and Their Impact, and Correcting Externalities with Pigouvian Taxes or Subsidies. Key definitions, formulas, and exam tips.