Author: Saim Khalid

Page explaining the effect of supply-side shocks on the economy and how central banks can respond. The resource combines text, charts, interactive simulations, and self-test questions with immediate feedback. Through the in-browser simulations, readers can see the results of different interest rate changes. It ends with prompts for further discussion.

Rajiv Sethi, Homa Zarghamee, and others, Barnard College, New York Online textbook which uses interactive visualisations and quizzes. It is intended not as a replacement for existing textbooks, but as a set of complementary resources that give a different way to explore the topic. The modules are on “Measuring Inequality”, “Specialization and Trade”, “Technology and…

Institute for Fiscal Studies and NESTA Interactive macro simulation of the UK economy in which the user can make dozens of alterations to taxes and public spending and see the effect on the government’s deficit.

While the law is fundamental, it assumes: In reality, markets face monopolies, advertising influence, emotional buying, and government interventions. These factors can distort the law of supply and demand.

Sometimes governments step in to regulate markets. Example:If the government sets a price ceiling on wheat to make food affordable, it may discourage farmers from producing more, causing shortages.

The law of supply and demand is not just theory—it shapes everyday life. Housing Market:When more people move into a city, demand for housing increases. If supply cannot keep up, rents and property prices rise. Labor Market:When a skill (like AI programming) is in high demand but supply of skilled workers is low, salaries for…

Demand and supply do not remain static. They shift due to external factors: Factors that shift demand: Factors that shift supply:

At equilibrium price: Example:If the demand for face masks rises during a pandemic, equilibrium price increases because more consumers are willing to pay higher prices, and suppliers adjust to produce more.

Illustration (conceptual):