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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.
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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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