Master Demand and Supply Analysis: A Comprehensive Guide for CFA Level 1

Ready to dive into the world of demand and supply analysis? In this comprehensive guide, we’ll cover everything you need to know to excel in this crucial topic for the CFA Level 1 exam. Let’s jump right in!

PRE: Own-Price Elasticity of Demand

Get your elastic groove on as we venture into the own-price elasticity of demand. Marvel at elastic and inelastic demands, and decipher how factors like close substitutes, income, and necessity affect the dance of demand.

► Boogie with elasticity here.

PRE: Cross Price and Income Elasticity of Demand

Embrace the elasticity fun as we delve into cross-price and income elasticities. Learn how related goods, like a Whopper and French fries, influence demand, and watch income levels shape the destiny of normal and inferior goods.

► Get elastic with cross-price and income here.

PRE: Substitution and Income Effects

Ever wondered how substitution and income effects can influence our choices when prices change? This lesson will take you on an eye-opening journey through the realm of normal and inferior goods, where you’ll learn about the three possible outcomes when a good’s price decreases. But beware – there are some exceptions to the law of demand, such as the elusive Giffen and Veblen goods, that will keep you on your toes!

► Embark on your thrilling journey through substitution and income effects here.

PRE: Marginal Returns and Productivity

Ever wonder how managing a café can teach you about the law of diminishing marginal returns? In this lesson, we’ll dive into supply analysis and explore factors of production, short run vs. long run, and productivity measures. You’ll learn about the three stages of marginal productivity of labor and discover the concept of diminishing marginal productivity, all while keeping the espresso flowing!

► Savor the rich flavor of supply analysis and diminishing marginal returns here.

Breakeven and Shutdown Analysis

Unravel the mystery of breakeven and shutdown conditions in the economics of your café venture. Learn how to differentiate fixed and variable costs, explore market conditions, and apply breakeven and shutdown analysis to a variety of real-world business cases.

► Brew up some knowledge about breakeven and shutdown conditions here.

Economies and Diseconomies of Scale

Embark on a journey to learn about economies and diseconomies of scale, and how they shape your long-term business choices. Discover the benefits of expansion, where economies of scale hit their limit, and the implications of diseconomies of scale on your enterprise.

► Grow your expertise on economies and diseconomies of scale here.