Principles of Economics: Microeconomics - Does the Equilibrium Model Work?

Does the equilibrium model work? Nobel Prize winner Vernon Smith conducted experiments testing this model and found that time and time again, the model did indeed work. This video takes a look at Smith’s evidence and analyzes other instances where market conditions shift either the demand or supply curve, and the equilibrium model comes into play. ***TEACHER RESOURCES*** Supply and Demand 5-day HS unit plan: https://mru.io/vam Assessment questions: https://mru.io/principles-19e7b Econ In The News, a free weekly email of class-ready news articles: https://learn.mru.org/econ-news/ More high school teacher resources: https://mru.io/high-school-3604c More professor resources: https://mru.io/university-teaching-2256a ***CONTINUE LEARNING*** Next video—Supply and Demand Terminology: https://mru.io/demand-21531 Practice questions: https://mru.io/does-equilibrium-3b3d4 Full Microeconomics course: https://mru.io/0gl 00:00 Vernon Smith 00:54 The Experiment 03:09 The Results 04:00 Model Prediction: Shifting Curves 05:54 Using Equilibrium to Understand History: Oil Prices