Key Idea: Topic 2.3 shows how demand and supply interact to determine the market price and quantity, what happens when equilibrium changes, and how to measure consumer and producer surplus.
โ Core definitions
โ๏ธ Surplus and shortage
๐ How equilibrium changes
Memory trick: D shifts โ P and Q move in the same direction. S shifts โ P and Q move in opposite directions.
๐ Simultaneous shifts
Always draw the diagram step by step: original equilibrium โ shift one curve โ shift the other โ identify what is certain and what is indeterminate.