Lecture 04: Market equilibrium and comparative statics

Content locked

The catalog is public. Reading this content requires approved access.

Why prices adjust

Comparative statics

Solving with equations

Figures from the lecture

Supply and Demand for XM points, graphically

Predicting price changes

Margarine prices go up

Dairy cattle feed prices go up

Prices spike as butter shortage spreads through Norway

Increased demand, reduced supply

Demand and supply both decrease

An example: