Economics · Cheatsheet
Unit 2 · Microeconomics
Chapter 1 · Demand, supply, equilibrium
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Law of demand
Price ↑ → quantity demanded ↓ (income + substitution effects).
Law of supply
Price ↑ → quantity supplied ↑.
Movement vs shift
Price change → movement ALONG the curve; non-price factor → SHIFT of the curve.
Demand shifters
Income, related-good prices, tastes, expectations, # buyers.
Supply shifters
Costs, technology, # producers, taxes/subsidies, expectations.
Equilibrium
Where D meets S: market clears. Above → surplus; below → shortage.