Toc: Front Cover......Page 1Title Page......Page 2Copyright......Page 3Table of Contents......Page 8Part 1 INTRODUCTION......Page 34CHAPTER 1 The Role and Method of Economics......Page 351.1 Economics: A Brief Introduction......Page 361.2 Economic Behavior......Page 401.3 Economic Theory......Page 431.4 Pitfalls to Avoid in Scientific Thinking......Page 471.5 Positive Statements and Normative Statements......Page 49Interactive Chapter Summary......Page 53CHAPTER 2 The Economic Way of Thinking......Page 692.1 Scarcity......Page 702.2 Choices, Costs, and Trade-Offs......Page 732.3 Marginal Thinking......Page 752.4 Incentives Matter......Page 802.5 Specialization and Trade......Page 822.6 Markets and Improved Efficiency......Page 85Interactive Chapter Summary......Page 88CHAPTER 3 Scarcity, Trade-Offs, and Production Possibilities......Page 993.1 The Three Economic Questions Every Society Faces......Page 1003.2 The Circular Flow Model......Page 1043.3 The Production Possibilities Curve......Page 1063.4 Economic Growth and the Production Possibilities Curve......Page 111Interactive Chapter Summary......Page 114Part 2 SUPPLY AND DEMAND......Page 124CHAPTER 4 Supply and Demand......Page 1254.1 Markets......Page 1264.2 Demand......Page 1274.3 Shifts in the Demand Curve......Page 1304.4 Supply......Page 1374.5 Shifts in the Supply Curve......Page 139Interactive Chapter Summary......Page 144CHAPTER 5 Bringing Supply and Demand Together......Page 1545.1 Market Equilibrium Price and Quantity......Page 1555.2 Changes in Equilibrium Price and Quantity......Page 1605.3 Price Controls......Page 168Interactive Chapter Summary......Page 174CHAPTER 6 Elasticities......Page 1846.1 Price Elasticity of Demand......Page 1856.2 Total Revenue and the Price Elasticity of Demand......Page 1916.3 Other Types of Demand Elasticities......Page 1966.4 Price Elasticity of Supply......Page 198Interactive Chapter Summary......Page 205Part 3 MARKET EFFICIENCY, MARKET FAILURE, AND THE PU