Demonstrate understanding of how consumer, producer and/or government choices affect society, using market equilibrium.

Consumer refers to an individual or household that demands a good or service.

- Consumer choices  refer to decisions made by individuals and households that collectively influence market demand for goods and services.  This includes price and non-price factors affecting demand.

- Producer choices refer to decisions made by individuals and firms that collectively influence market supply of goods and services.  This includes price and non-price factors affecting supply.

- Government choices refer to price controls, direct and indirect taxes, and subsidies.

- Society refers to the following sectors: consumers, producers and the government.

- Market equilibrium refers to the price and quantity determined by the interaction of supply and demand.  This includes identifying market reaction to excess demand or excess supply resulting in equilibrium.

• Demonstrate understanding would typically involve:
• identifying, describing or providing an explanation of how producer, consumer and/or government choices affect market equilibrium
• identifying, describing or providing an explanation of how changes in market equilibrium affect different sectors
• clearly illustrating changes using the supply and demand model.

Demonstrate in-depth understanding would typically involve:

• providing a detailed explanation, using the supply and demand model, of how producer, consumer and/or government choices affect market equilibrium
• providing a detailed explanation, using the supply and demand model, of how changes in market equilibrium affect different sectors.

Demonstrate comprehensive understanding would typically involve:

• linking detailed explanations of how producer, consumer and/or government choices affect market equilibrium with detailed explanations of how those changes affect different sectors
• integrating changes in supply and demand into detailed explanations.