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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
Clear, focused slides weighted by exam importance, with examples and key takeaways.
Practice Quiz
15 MCQs + 10 short answers matched to your teacher's question style.
Quick Reference
One-page cheat sheet with formulas, definitions, and common traps.
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