This section is the Introduction
Go to Changes in Supply, Demand and Market Equilibrium
Go to A Firm's Long Run Average Cost Curve
Go to Profit Maximization for a Competitive Firm
Go to Market Equilibrium in the Long Run
Go to The Aggregate Demand and Aggregate Supply Model
Go to Macroeconomic Phenomena in the AD/AS Model
Go to Economic Policy Tools

Content development  
Dennis Kaufman University of Wisconsin-Parkside
Site design and  
interactive graphs  
Rebecca Kaufman WhiteNova

Through interactive graphs, ThinkEconomics illustrates basic economic principles that are taught in a college-level introductory economics course. These graphs enable students to develop analytic and deductive reasoning skills by manipulating graphical elements of the economic models. Students also learn how to apply these models to analyze and understand economic phenomena.

Economic models represent causal economic interrelationships that occur in a particular sequence or order. Textbooks offer written explanations accompanied by static illustrations, but they cannot capture or animate the step-by-step dynamics of an economic model. In a classroom, a professor typically draws a graph on the chalkboard, explains its construction, and then uses the graph to analyze the effects of various changes in the model's parameters or variables. This classroom explanation and graphical manipulations happen only once and the total analysis can be very difficult to replicate in student lecture notes.

With the interactive possibilities of Macromedia Flash and the anytime, anyplace nature of the Web, students can now experience the models as they were meant to be, and in the process, learn to "think economics." Because of the vector capabilities of Flash, the models do not require a broadband connection for fast downloading and students can easily repeat each model as many times as necessary to understand the economic principle. Animation and interactivity combine to create a greatly improved learning environment.