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An illustrative economics sample: study slides, practice questions, and a quick reference. Your deck is generated from your own materials. AI can make mistakes; check important answers against your course sources.
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 — these describe different changes.
Key Definition
Consumer surplus = difference between willingness to pay and actual price.
Remember
Binding price floors above equilibrium create surpluses. Binding ceilings below equilibrium create shortages.
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