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P05

Economics Basics

Supply, demand, prices and the big economy. The ideas behind every pricing decision and every headline.

Start the course →10 lessons · first 2 free
  1. Opportunity CostEvery yes is a no to something else. The real cost of a choice is the best thing you gave up, and money already spent shouldn't change your mind. · 10 minFree
  2. Supply and DemandPrices aren't set by sellers or buyers alone: they land where the two meet. Shift demand and supply yourself and watch prices, shortages and queues appear. · 12 minFree
  3. ElasticityRaise a price and some buyers leave. How many? That one number, elasticity, decides whether a price rise brings in more money or less. · 12 min🔒 VIP
  4. Markets and CompetitionOne venue in town can charge a lot. Five venues can't. See how the number of rivals, how alike they are, and how hard it is to enter decide prices and profits. · 12 min🔒 VIP
  5. Marginal ThinkingDon't ask "is the whole thing profitable?" Ask "is the next one worth it?" Keep adding while the extra revenue beats the extra cost, and stop exactly where it doesn't. · 11 min🔒 VIP
  6. IncentivesPeople do what they're rewarded for, not what you meant. See how a well-meant bonus can quietly cost you money, and how to design rewards that pull everyone the same way. · 11 min🔒 VIP
  7. GDP and the Business CycleThe whole economy's sales figure, and the boom-and-bust rhythm it moves in. Learn to read it, separate real growth from inflation, and see why some businesses feel recessions far more than others. · 12 min🔒 VIP
  8. Inflation and Interest RatesPrices creep up, cash quietly shrinks, and central banks raise or cut rates to keep it under control. See what that does to a business's costs, savings and loan payments. · 12 min🔒 VIP
  9. Trade and Exchange RatesWhy everyone gains when each does what they're relatively best at, and how a moving exchange rate can change the price of something you buy abroad before you've even paid. · 12 min🔒 VIP
  10. Boss: Price Concert TicketsA big-name band, 400 seats, one night. Find the best price, count the bar, try tiers, beat the resellers, and weigh the night against a corporate booking. Every idea in this course, in one decision. · 15 min🔒 VIP