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Microeconomics Study Notes: The Circular Flow, Markets, and Equilibrium

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Circular Flow Diagram

Competitive Markets

The Demand Curve

Shifts in the Demand Curve

Movement Along a Demand Curve

The Supply Curve

Shifts in the Supply Curve

Movement Along a Supply Curve

Market Equilibrium

Using the Supply and Demand Curves to Find Equilibrium

Effects of Surplus

Effects of Shortage