The key word in this video for those that are confused is the word hope. In the second scenario, if the supply of apartments dropped and you were a student, then you would hope that the demand for the apartments would also drop a lot. That the demand for the apartments would be elastic. This would mean that the demand would head towards the left on the graph because you would want less competition for the remaining apartments (less demand). I.E. that your fellow students would say f this college thing I'm out of here. This would increase the supply of apartments allowing the price to stay somewhat where it was before the the condemnation of the buildings. I hope this helps people who were confused like I was when it came to the second scenario.
I wish they would have said "clearly Quantity Demanded will increase" rather than "Clearly Demand will Increase" at the 1:10 mark. Demand isn't changing as you noted earlier. This would be a great video for my students, but that will reinforce the confusion between demand and quantity demanded.
I don't really understand why you would want the price to be inelastic. what if the default price is very high and it being inelastic will mean that the price will always be in the expensive range. on the other hand if it's elastic, the price can get lower and the prices are generally more variable.
@Analyticall Sound you'd be correct if there was a monopoly, but it's implied there is no monopoly, I guess.. So that *every* supplier has the incentive to make the price lower than *every other* supplier, otherwise they would sell nothing(coz competitors have lower price), you might say now that this sounds like actually _elastic_ demand, and yes, it would be elastic for a _particular_ supplier, but the demand for _any_ supplier is inelastic. Just like in the previous video, _"demand for lettuce is elastic, but demand for food in general isn't"_ , same here, demand for any particular apartment is elastic, but for an apartment in general it is not. That suggests that elasticity is inelastic _from consumer's(the student's) point of view,_ but from the point of every supplier, the demand for _their_ aparement is very elastic. This is why they would comply with equilibrium.
Why is the thumb nail of this video roaches? lol. No one wants to watch roaches. People do want to watch thin, half-naked, probably caucasian women. A woman in the thumb nail would have most likely brought in more viewers than the roaches would have.
