"Understanding the Market" is an introduction to microeconomics - the study of the principal individual economic factors, the consumer and the firm, and how they interact in markets. It examines issues such as pricing (how do firms decide what price to charge for their goods? and what effect do pricing changes have on consumer demand?), the organization of the firm and the labour market. The book takes a non mathematical approach and includes revision exercises with answers. It relates economic theory to the real world and includes case studies from a range of industries. This new edition includes new chapters on factor markets, trade, income distribution and pricing policies. The volume has been completely reset in larger format for ease of reference. It is aimed at students at first year degree level studying microeconomics as part of a wider course in business, combined social science or any other degree which requires a basic understanding of economics. It is also suitable for students studying for a professional qualification in finance, accountancy, marketing etc.