Principles of Microeconomics / Unit 2 MIC 0116 short lesson, about 20 seconds
The Four-Step Process
Captions available
The idea
Four steps answer any market question: draw the market before the event; decide whether demand or supply shifts; decide which way and draw it; compare the new equilibrium with the old.
In practice
Good salmon weather: supply, right, price down, quantity up.
Where people slip
Step two is the hard one: does the event change what buyers would buy at each price, or what sellers would sell?
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- 0117Which Curve Shifts, and Which Way
- 0118A Related Good's Price Changes
- 0119When Both Curves Shift
- 0120A Shift in One Curve Moves Along the Other
- 0142The Drought Chain: Which Curve Moves, Which Does Not
- 0220One Model, Three Markets, Worked
- 0624How Entry Drives Profit to Zero
- 1606Demand, Supply, and the Four Steps
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