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ECO 101 · Unit 1 of 6

Markets and Prices

Microeconomics and Competitive Markets

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Learning objectives

After completing this unit, you will be able to:

  • Apply frameworks from \
  • Apply the frameworks in "Markets and Prices" to a real management decision
  • Make progress on your Microeconomics and Competitive Markets applied project applied project

Why this matters

Markets and Prices is essential to Microeconomics and Competitive Markets. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Microeconomics and Competitive Markets applied project. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Markets and Prices"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Microeconomics and Competitive Markets applied project?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • Apply frameworks from \
  • Business concepts only matter when they change a decision.
  • Your ECO 101 assessment (Demand, supply, elasticity, market structure, and strategic microeconomic reasoning.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Markets and Prices45 min
Complete a focused practice exercise on **Markets and Prices**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ECO 101.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Markets and Prices30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ECO 101 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Case analysis

Analyze a case using frameworks from this unit.

CaseCase analysis: Markets and Prices60 min
Analyze a real business case through the lens of **Markets and Prices**. Choose a public company event, HBR-style case, or documented decision. **Deliverable structure:** 1. Situation summary (150 words) 2. Analysis using this unit's frameworks (400 words) 3. Recommendation (150 words) 4. Risks and what would change your mind

Deliverable

2-page case write-up in your portfolio.

Rubric

  • • Case facts are accurate and sourced
  • • Analysis uses unit frameworks explicitly
  • • Recommendation is justified with tradeoffs
  • • Risks are specific, not generic

Knowledge quiz

Check your understanding before marking the unit complete.

1. ClearPeak must retire 2,400 MW of coal while adding 1,800 MW of solar by 2030 under a fixed capital budget. Elena frames the choice as scarcity. What is the opportunity cost of accelerating one 300 MW solar farm by two years?

2. ClearPeak raises the residential bundled rate from $0.118/kWh to $0.125/kWh. Field teams report more load shifting and rooftop solar inquiries. Which demand concept best explains customer response along the curve?

3. On a summer peak hour at 8,500 MW load, ClearPeak dispatches peakers at $0.067/kWh while coal runs at $0.042/kWh and solar at $0.031/kWh. Which supply statement is correct for the peak hour?

4. In ClearPeak's regulated market, Elena describes equilibrium as where quantity demanded equals scheduled dispatch at an allowed price. A neighboring state's wholesale price spikes but retail caps hold. What outcome is most likely short run?

5. A heat wave shifts ClearPeak's summer peak from 8,200 MW to 8,500 MW at the same retail rate. Tom Bradley must brief the PUC. How should the team classify the change?

6. ClearPeak's worked example shows baseline monthly impact $4M and a 15% initiative lift to $5M. What is the delta before risk adjustments?

7. Elena estimates a 1% change in residential energy sales at 1.2 million customers, ~900 kWh/month average, and $0.118/kWh bundled rate. Approximate monthly revenue impact before fuel cost adjustments?

8. An analyst treats contractual fuel hedges as a variable that changes when retail rates move. What common mistake does this reflect?

Next unit: Elasticity and Market Response →