Changes in equilibrium price and quantity when supply and demand change | Khan Academy 

No cuz this is too true 😭

f

they fulfilled their purpose in other video😅

​@@062.jannatulferdausanu7 Please share me the link

Thanks bro, you just saved my Econ grade

It should. But in this case since the supply is not increasing, the increased demand is not meeting the previous supply level. So to meet the current level of demand, sellers increase the price.

If it weren't for Khan making these videos for free, I would have never made it through college for a degree in computer engineering--so I'm a bit defensive of his style. I see your point. And I say this not to attack you, but with respect and because you sound like a teacher who can help students. If students ever struggle with this concept, it's not because of the direction of the arrows, but because of their lack of intuition. From my past experience of having struggled in class even though I was quite competent, the problem for me wasn't confusing arrows or notation; the problem was that I was being told to memorize the arrows and notation. Leading up to this video on Khan Academy, Sal definitely presented the complete intuition as to WHY the curves are shifting. Because I understand what is happening, the arrows are barely noticeable. My point being, if students are getting thrown off by the arrows, they obviously don't understand it to begin with. The lack of understanding is the problem, and the fact that the arrows can confuse them is proof of their lack thereof. It isn't about getting answers right on tests, it's about learning for application in the real world.

oww i understand what you mean thank you for the tip

Equilibrium will also change. Equilibrium is when the supply and demand curves intersect each other, if one (or both) curves change, the intersection point (equilibrium) will also change, like in this video

Bro my teachers do the same thing, I don’t get it 😂

They are different things. Supply is the amount in the market, Quantity is the amount you can buy per same amount. So if its $1 for ice cream is that getting you two scoops or one. Supply is that there is 1000 scoops total that can be bought.

Quantity supplied changes as a result of change in the price while ALL OTHER factors are help constant (i.e: prices of related goods, future expectations, government policies, input prices, etc.) Supply changes as a result of a change in any factor mention above, OTHER THAN Price of the good. A change in Quantity supplied will lead to a movement of the point along the curve. A change in supply will change the entire curve. BUT when the entire curve changes, the amount supplied and the price will also change as shown in the video. If the supply curve shifts to the right, the quantity supplied at each price will be higher than before. And if the supply curve shifts to the left: the opposite.

These are highly simplified models, and therefore while learning the fundamentals of economics one must keep in mind that there are no hard and fast rules in economics- only simplified, abstract models to understand the subject matter easily. And models can always go wrong, or not meet expectations when you apply them to understand the real world. The law of supply and demand aren't rigorous rules that must always hold like, say, the law of gravity (you might know this already, but i am simply restating them to reinforce the idea that it is not always black and white) Coming to your question, an increase/decrease in production of either compliments (skis or ski boots), does not guarantee that demand might also respond proportionately. Here you must understand that demand is for SKIING in general, not for ski boots or skis separately. So if suddenly people feel like they don't want to ski as much, an increase in production of either ski boots or skis wouldn't make much of a difference and producers would start incurring losses. I mean, if people simply don't care about skiing in general, it doesn't make sense to add more and more skis and boots to the market. And that's more to do with people's preferences. Another time when it could actually be beneficial to make more compliments is when its skiing season, and as a producer you know that people are bound to want to buy a lot of skis and boots. Now, if you were to increase production of boots and skis, it is in tune with what people want also. Supply has increased, which decreases prices of both products, therefore bringing down the cost of skiing in general to the consumers. Demand, therefore is boosted and suppliers make a lot of money making more compliments (as long as skiing is still in fashion). So it is highly circumstantial, and there are a lot of factors you must account for to understand the market at any given time. :)

@@nithinprasad2761 thank you very much! I ended up getting a 94% on my supply and demand lecture exam that also covered government enforced taxes and stuff like price cielings and floors and cross price elasticity 🤷🏻‍♂️! I procrastinated way to much and had to cram 14 hours straight for the exam but at least something must have stuck in my brain 😂👍🏻! I'm not gonna lie, I hate economics. I'm in my senior year in the conservation biology/ecology major and the fact that my heavy science major thinks learning economics is a good use of my time is kind of frustrating to be honest 🤷🏻‍♂️😂! Thanks again for your explanations, they did help cement some of the concepts we were covering for sure 😁👍🏻!

@@rchallender2493 you're welcome :)

you got it wrong brother. when price increases demand decreases but its not vice versa. when demand increases, price also increases

not wori i wil get ju out stai wer ju ar

It does increase supply. The rightward shift of a curve represents an increase. A leftward shift represents decrease. The second supply curve on the bottom actually represents a rightward shift of the supply curve. That is why the quantity supplied (shown by Q2) is increasing and the price (P2) is decreasing.

pokemon

​@cj9318 acktchually maybe