Unit 2 (Microeconomics)

Introduction: Unit 2

Unit 2 focuses on how individual markets operate and how consumers, firms, and governments make economic decisions. It explores key concepts such as demand and supply, elasticity, market failure, and the role of government intervention in improving market outcomes. This unit also examines how policies such as taxes, subsidies, and price controls affect efficiency and equity in markets. The following real-world case studies, developed by Mr Weldon's IB Economics students, help connect these microeconomic concepts to real policy decisions and market outcomes.