Principles of Macroeconomics / Unit 18 MAC 1706 short lesson, about 20 seconds
Model One: Demand and Supply
Captions available
The idea
One market, one good. Demand slopes down, supply slopes up, and the crossing gives price and quantity. Everything else in the model is a shift of one curve or the other.
In practice
Unit two built it; units thirteen and seventeen reuse it for currencies and for traded goods.
Where people slip
A price control stops the market clearing and creates a shortage or a surplus.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics