Economists Do It With Models

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Videos: What On Earth Are “Comparative Statics” Anyway?

May 14th, 2010 · 2 Comments
Econ 101 · Videos

Economists use the term “comparative statics” to refer to changes in equilibrium. I talked before about how the forces of supply and demand come together to determine prices and quantities in a market, and now we can look at what happens to those equilibrium prices and quantities when there is a shock to supply, demand, or both. (Hint: Price increases are quite often the result of market forces and not simply due to the fact that corporations are evil. Just saying.)

The next two videos go through the algebra of shifting these curves around and determining the quantitative changes in equilibrium price and quantity. These are here mainly for those who are in an economics class and are going to need to do this at some point. For a general audience, the videos above are totally sufficient.

See here for the Micro 101 videos page, or here for econgirl’s YouTube channel.

Tags: Econ 101 · Videos

2 responses so far ↓

  • 1 Dave // May 14, 2010 at 3:16 pm

    You should have James Earl Jones do your voice-over.

  • 2 Margeret // Oct 18, 2011 at 11:40 am

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