AC9HE8K01
how markets influence decisions about the allocation of resources to the production of goods and services, and the effect of prices on these decisions
Elaborations
- AC9HE8K01_E1identifying who is involved in the market system in Australia and explaining how the market operates through the interactions of participants (household, business, finance and government sectors)
- AC9HE8K01_E2explaining how interaction between buyers and sellers enables the allocation of resources to the production of goods and services; that is, “What to produce?”, “How to produce?” and “For whom to produce?”
- AC9HE8K01_E3discussing examples of products or services that sell for high prices and low prices, and identifying the factors that influence the setting of price; for example, factors influencing the cost of petrol include available supply, consumer demand, manufacturing costs and competition
- AC9HE8K01_E4explaining how price is the means by which the decisions of consumers and businesses interact to determine the allocation of resources; for example, when the price of a good or service rises, resources are redirected to produce additional goods and services
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