4.6: Concluding Comments

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This chapter provided an opportunity to put almost everything you have learned up to this point in the course to work. In particular, you have learned how to use elasticities of demand an supply within a modeling framework to predict the effects of an exogenous shock on the market price and quantity. You have also learned how to use elasticities to estimate the exogenous shocks that go into your model. Problems Sets and 1 and 2 below are intended to reinforce these concepts within the context of a single market.