Equilibrium in a market means that the quantity demanded and the quantity supplied are the same. These are all parameters in our market. If any of these change, the supply or demand curve will shift, and the market will readjust to a new equilibrium. Be able to find equilibrium both graphically and numerically. Be able to analyze how the imposition of a price floor or ceiling affects price and quantity.
Price elasticity is a measure of the responsiveness of quantity demanded or supplied to price.
Be able to identify whether a supply or demand curve is elastic or inelastic. Be able to calculate elasticity numerically. Just looking at one unit or one particular action, not a group of things or a set of actions. Know how to conduct an analysis of consumer choice when you are given numeric values of utility for different consumption opportunities. Know how to conduct an analysis of consumer choice when you are given indifference curves and budget constraints.