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Supply & Demand Curves
- Price elasticity measures how quantity demanded responds to price changes
- Equilibrium occurs where supply and demand curves intersect
- Shifts vs. movements along the curve — key exam distinction
Key Takeaway
Focus on factors that shift curves (income, preferences) vs. price changes that move along them.
When demand is perfectly inelastic, the demand curve is:
Elasticity Formula
E = (%ΔQ) / (%ΔP)
Common Trap
Don't confuse a shift in demand with a change in quantity demanded — they test this every time.
Key Definition
Consumer surplus = difference between willingness to pay and actual price.
Remember
Price floors create surpluses. Price ceilings create shortages.
Everything you need to study smarter
Study Slides
Professor-style slides weighted by exam importance, with examples and key takeaways.
Practice Quiz
15 MCQs + 10 short answers matched to your professor's question style.
Quick Reference
One-page cheat sheet with formulas, definitions, and common traps.
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