General Model of Linear Demand and Supply Functions

Using Partial Differentiation for Comparative Statics Analysis

Comparison of Algebraic and Diagrammatic Methods in Comparative Statics

Modeling and Analyzing Shocks Algebraically

Consider the market for avocados, which is initially in a stable state where the amount produced equals the amount consumers want to buy at the going price. A new, widely publicized scientific study finds that daily avocado consumption significantly improves cardiovascular health. By comparing the market's initial stable state to the new one that will emerge after this news, what is the most likely outcome?

Analysis of the Coffee Bean Market

Analysis of a Technological Shock in the Solar Panel Market

For a standard competitive market, match each external event (shock) with its most likely effect on the market's equilibrium price (P*) and equilibrium quantity (Q*), assuming no other changes occur.

Analysis of Simultaneous Market Changes

In the market for cotton, observers note that over the past year, the equilibrium price has risen while the equilibrium quantity traded has fallen. This outcome is consistent with a significant increase in consumer preference for cotton clothing.

Suppose that in the market for a specific good, observers note that over a short period, the price at which the good is sold has decreased, while the total quantity of the good bought and sold has increased. Which of the following single events could explain this specific combination of outcomes?

Evaluating Competing Explanations for Electric Vehicle Market Trends

Arrange the following steps into the correct logical sequence for performing a basic comparative statics analysis to determine how an external event affects a market.

Limitations of an Economic Method