Course Description

This chapter introduces the foundational principles of how markets operate, focusing on the interaction between supply and demand to determine prices. It explores the concept of resource allocation, different types of economies (free market, mixed, and command), and how price mechanisms respond to changes in consumer preferences and producer costs. It also examines the impact of market failure and the role of government intervention in correcting inefficiencies. By the end of the chapter, students understand the core dynamics of decision-making in markets and the importance of economic incentives.