Part B | How Competitive Markets Work
// prices can coordinate buyers and sellers //Part B reveals how markets solve the coordination problem from Part A. Through the elegant dance of supply and demand, prices emerge to coordinate economic activity and guide society toward efficiency. These aren't just abstract curves—they're the invisible forces that determine what gets produced, who gets what, and how resources flow through the economy. By the end of Part B, you'll understand why competitive markets are one of humanity's greatest innovations for creating prosperity.
Block B1 ~ Demand
Demand curves show how much consumers are willing to buy at each price.
Episode B1
This video introduces the demand curve as a way of organizing buyers' preferences.
Chapter 4: Market forces of supply and demand Reading
Skim the text to understand the main ideas
Homework B1: Wednesday September 25 Practice Assignment Solutions
Unlimited practice. Instant feedback. Submit to Gradescope.
Block B2 ~ Supply
Supply curves show how much producers are willing to sell at each price.
Episode B2
This video introduces the supply curve and how it helps answer Part B's questions.
Chapter (continued)
Continues Chapter 4 from Block B1
Homework B2 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
Block B3 ~ Equilibrium
Markets find the equilibrium price where quantity supplied equals quantity demanded.
Episode B3
This video introduces shortage and surplus and the incentives of buyers and sellers to move prices toward equilibrium.
Chapter 6: Government policies Reading
Skim the text to understand the main ideas
Homework B3 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
External Video
Simulating a Market - excellent video from one of my favorite Youtube channels!
Block B4 ~ Efficiency
Competitive markets maximize total surplus, achieving social efficiency.
Episode B4
This video introduces government price controls to show that the market maximizes total surplus in some environments.
Chapter 7: The efficiency of markets Reading
Skim the text to understand the main ideas
Vignette B4
Efficiency practice problems
Homework B4 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
Block B5 ~ Elasticity
Elasticity measures how responsive quantity is to changes in price, income, or other factors.
Episode B5
Elasticity measures responsiveness
Reading B5
Skim the text to understand the main ideas
Vignette B5
Elasticity practice problems
Homework B5 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
Block B6 ~ Comparative Statics
Comparative statics analyzes how equilibrium changes when supply or demand conditions shift.
Episode B6
How markets respond to changes
Reading B6
Skim the text to understand the main ideas
Vignette B6
Comparative statics practice problems
Homework B6 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
Block B7 ~ Tariffs
International trade improves welfare but also creates winners and losers, which can lead to political pressure for protectionist policies like tariffs.
Episode B7
International Trade
Chapter 9: Markets and international trade Reading
Skim the text to understand the main ideas
Homework B7 Practice
Unlimited practice. Instant feedback. Submit to Gradescope.
Recitations
Come to Recitations prepared to work through extended Vignettes in both small groups and as a class. Your Recitation Instructor will guide you through a less structured economic problem, similar to what was covered in class and what you'll see on the next MiniExam. Submit your work to Gradescope at the end of Recitation.
MiniExam
MiniExam B will be held on Wednesday October 2nd and covers everything in Part B. If you understand the concepts and do the work in the Vignettes, Homework, and Demo, you're going to be in good shape on the MiniExam.
