Macroeconomics

Topic: Macroeconomics Order Description Watch the Khan Academy Video "Changes in Market Equilibrium" at www.khanacademy.org. • Identify two microeconomics and two macroeconomics principles or concepts from the simulation/video. • Explain why you have categorized these selected principles or concepts as microeconomics or macroeconomics. • Identify at least one shift of the supply curve and one shift of the demand curve in the simulation/video. • Explain what causes the shifts, and how each shift affects the price, quantity, and decision making. Include responses to the following: • How might you apply what you learned about supply and demand from the simulation/video to your understanding of a real-world product with which you are familiar? • How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on equilibrium price and quantity? • How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity? • How does the price elasticity of demand affect a consumer's purchasing and the firm's pricing strategy as it relates to the simulation/video?