Welcome to Credit Unit 2

In Credit Unit 2 you will first explore the concept of elasticity. Specifically, you will learn about the elasticity of demand, income elasticity, cross-price elasticity, and elasticity of supply.

Next, you will examine the ways in which markets increase overall welfare, i.e. via consumer and producer surplus. You will also discuss the concepts of marginal costs and benefits and explore how they affect a firm’s decision on whether or not to make one more or one less product. In addition, to begin understanding the intricate relationship between government and economics, you will take a look at what happens when a market fails to produce an efficient equilibrium and the various ways in which the government can address these failures.

Finally, you will focus on the individual consumer and the characteristics that compel a consumer to choose to spend income on goods and services. The Theory of Demand, which is derived from the Theory of Consumer Behavior, is also presented. 

Course Outcomes: