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#cfa-level #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
prices simultaneously reflect both the value to the buyer of the next (or marginal) unit and the cost to the seller of that unit.
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1. INTRODUCTION
; This reading focuses on a fundamental subject in microeconomics: demand and supply analysis. Demand and supply analysis is the study of how buyers and sellers interact to determine transaction prices and quantities. As we will see, <span>prices simultaneously reflect both the value to the buyer of the next (or marginal) unit and the cost to the seller of that unit. In private enterprise market economies, which are the chief concern of investment analysts, demand and supply analysis encompasses the most basic set of microeconomic tools.


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