Principles of Microeconomics / Unit 17 MIC 1608 short lesson, about 20 seconds
Equilibrium, Surplus, Shortage, Both Curves
Captions available
The idea
Equilibrium: quantity demanded equals quantity supplied. Above it a surplus pushes price down; below it a shortage pushes it up. When both curves shift, one of price and quantity is certain; the other depends on the larger shift.
In practice
Demand up and supply up: quantity rises; price could go either way.
Where people slip
Report the ambiguous variable as ambiguous; guessing it is the usual error.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- Nothing yet depends on this.
Something wrong in this lesson? Flag it