Principles of Macroeconomics / Unit 2 MAC 0116 short lesson, about 20 seconds
The Four-Step Process
Captions available
The idea
Four steps settle any event: draw the market before it, decide whether demand or supply moves, decide which way, and compare the new equilibrium with the old.
In practice
Good weather shifts a crop's supply right, so the price falls and the quantity rises.
Where people slip
The quantity rose although demand never moved: that is a movement along the demand curve.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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