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Script · Week 3 seminar
Econ 101 Week 3 — Supply & DemandREC 41:12
2 speakers · English (auto-detected) · 98.6% confidence
P
Professor · 06:18Today we start with how the equilibrium price is determined.
P
Professor · 09:44For the exam, you must be able to tell which way this graph shifts.
S
Student · 10:30What happens to price if demand and supply rise at the same time?
Key points, auto-extracted

5 key points captured — "equilibrium price", "simultaneous shifts in supply & demand", and more.

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Quiz · Econ 101 practice
Econ 101 · Week 3
Q1 · 1/3

What determines the equilibrium price?

Where supply and demand intersect✓
The price producers hope for
A government-posted price
Total quantity demanded
Q2 · 2/3

If demand and supply both increase, what happens?

Price rises, quantity falls✕
Price is ambiguous, quantity rises✓
Both price and quantity fall
No change
Q3 · 3/3

A classic side effect of a price ceiling?

Excess supply
Excess demand (shortages)✓
Price stability
Higher tax revenue
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Script + summary · Week 3 seminar
Script
P
Professor · 06:18We start with how the equilibrium price is determined.
P
Professor · 09:44For the exam, know which way this graph shifts.
S
Student · 10:30What happens to price if demand and supply rise at the same time?
Summary
1. Equilibrium price
1-1. How it is determined
★Set where the demand and supply curves intersect
○When both increase, price is ambiguous but quantity rises
1-2. Price ceilings
○Can cause excess demand (shortages)
○Black markets may form
1-3. Reading graph shifts
○Distinguish movement along a curve from a shift of the curve
○A price change moves you along the curve
1-4. Exam prep
○Shift direction is a key exam point
‹Econ 101 Week 3 — Supply & D...↱⋮
Board chatSummaryTemplatesScript
Summary ⓘ
1. Equilibrium price
1-1. How it is determined
★Set where demand and supply curves intersect
○Both up: price ambiguous, quantity rises
○Shift direction is a key exam point
1-2. Price ceilings
○Can cause excess demand (shortages)
○Black markets may form
1-3. Reading graph shifts
○Movement along vs. shift of the curve
○Price moves along; income shifts the curve
1-4. Exam prep
○Shift direction is a key exam point
○Simultaneous-shift questions come up often
2. Price floors
2-1. Definition
○A legal minimum price set above equilibrium
○Creates excess supply (surpluses)

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