- The Supply and Demand model is about the relationship between supply and demand curves, not just quantities or prices.
- Changes in quantity alone do not predict price changes; the cause—whether a shift in demand or supply—determines the outcome.
- Similarly, changes in price alone do not predict quantity changes; the reason behind the price shift matters.
- Many experts, including economists and LLMs like ChatGPT, misunderstand this model, leading to incorrect predictions.