Principles of Microeconomics / Unit 2 MIC 0120 short lesson, about 20 seconds
A Shift in One Curve Moves Along the Other
Captions available
The idea
When one curve shifts, the price changes, and that change moves along the other curve; it never shifts the other curve, or the first one back.
In practice
A drought shifts supply left; the higher price moves buyers up their curve.
Where people slip
The tempting error: fewer peas means less demand, so demand shifts. It does not; buyers want the same at each price.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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