AP Microeconomics – Resource Allocation
This lesson supports the Nature and Function of Product Markets section of the Advanced Placement Microeconomics Curriculum. In this lesson, students learn how to analyze the effects of a change in demand or supply in one market on the equilibrium position in a related market.
This lesson appears as Lesson 1 in Unit 2: Nature and Function of Product Markets in CEE's Advanced Placement Microeconomics (4th Edition).
- Understand that markets do not exist in isloation from other markets. A change in one market can have an effect on demand and supply in another market. It is important that students recognize these secondary effects of the initial change.
- Distinguish between a change in demand or supply and a change in quantity demanded or quantity supplied.
- Understand the role played by price in a competitive market in the allocation of resources to higher value uses.
Please refer to the Resource Allocation, Teacher Lesson.
After students complete Activity 2-1, make sure they understand the difference between a shift of a demand or supply curive and a movement along the curve. This lesson gives them valuable practice developing this skill.
Not available for this lesson.
Please refer to the Resource Allocation, Student Resource Manual.