Shocks to the Equilibrium
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Shocks to the Equilibrium: This is the basic story of comparative statics. Students likely will be familiar with this type of analysis from a graphical, qualitative perspective, but it is a good idea to spend some time showing them how the same analysis can become more quantitative in the presences of specific functional forms for supply and demand. This is an opportunity to practice some basic algebra skills and also serves as motivation for the estimation of demand and supply functions that will be coming up in Chapter 3.

