Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: www.khanacadem... How the equilibrium price or quantity might change due to changes in supply or demand More free lessons at: www.khanacademy...
your videos explain economic concepts better than my professor. After every lecture on a new topic I consult your videos to help clear out points. Thank you so much for putting this up!
I was particularly interested in the alteration to 'supply' in order to assist in the fluctuation of overall price regarding 'demand'. Especially the part where you don't have to provide as much 'supply' and still be able to generate a greater 'price' via inducing scarcity in the open market by intentionally reducing quantity...not that there was any particular reason to cull the supply except to maintain profit. Notice, if you increase the 'supply'...the 'price' drops regardless of 'demand'...
Ohhhh now I get it!....the equilibrium price is the market sentiment...supply and demand just lag behind...of course ill jazz up my conclusion for class 2morrow
For the first graph about disease why would the supply curve shift to the right. Wouldn't the disease mean that the suppliers can't supply many apples because of this and the curve will shift to the left (i.e quantity supplied decreases). Can someone please explain to me. I have an exam next week.
In the second case u cleared, why did the supply curve didn't shift and instead just quantity supplied changed in that the new shifted demand curve changed the equilibrium price?
Wait, question. In the first example, when you said it shifted to the right you also said it shifted up. Doesn't an upward shift mean a leftward shift, isn't that a contradiction? (at least in regards to the supply curve).
There are 2 concepts here actually. When there is a change in the price of the product the change is indicated by movement along the curve i.e a higher point on the curve or a lower point. Hence why it's called *CHANGE IN QUANTITY SUPPLIED* Whereas a supply curve shifts due to change in factors other than it's own price. So, when a supply curve shifts, it's due to an increase or decrease in the quantity supplied. And when the supply increases it "shifts " to the *right* whereas a decrease in supply is indicated by the leftward shift. This is *CHANGE IN SUPPLY* note the subtle difference.
@S0up3rD0up3r Nah, demand in the economic sense is not how much people want, but how much they are willing to pay for it. And in your example, well, the price of apples would be so ridiculously high that no one would be willing to pay for 6 apples. The problem with for example alternative fuels is that oil is still by far the cheapest and most efficient way of powering vehicles. Oils must become scarcer and even more expensive for alternative fuels to become viable
@ShwangShwing ...unless, of course, you are part of a corporate cartel that's cornered the market on a specific good and/or service - then it doesn't matter. You can continue to inflate the price until the demand drops off, then reduce the price in increment until you establish a stable influx of profit. Competition really doesn't exist anymore...any competition can quickly be run out of business insuring corporate stability. :/
Dear Khan Academy instructor, thanks so much for your lectures, they are really great. I would like to report a mistake in the video. At 6:41 you mentioned the new equilibrium price wrongly. Sorry for that, but some people who is new in this subject can confuse it. Thanks in advance :)
plz upload video for perfect elastic demand and increase in suppy , perfect inelastic demand and increase in suppy,perfect elastic supply and increase in demand , perfect inelastic suppy and increase in demand
