Extensively tested in schools and colleges, this modular-based book provides a progressive introduction to supply and demand analysis and the theory of the firm, and shows how it can be applied to real economic problems. Its generous use of diagrams, examples and past examination questions helps the student understand and apply the basic principles. Each topic is developed through the use of data response and multiple-choice questions. No previous knowledge of the subject is assumed, but the text progresses through the material to achieve the necessary standard for examination success.