***TEACHER RESOURCES*** Supply and Demand 5-day HS unit plan: mru.io/0bs Assessment questions: mru.io/principles-29b64 More high school teacher resources: mru.io/high-school-f4a7d More professor resources: mru.io/university-teaching-9e230 ***CONTINUE LEARNING*** Next video-Exploring Equilibrium: mru.io/equilibrium-a1e84 Practice questions: mru.io/69666 Full Microeconomics course: mru.io/sp7
Hi Calvin, Please feel free to suggest courses in our feedback forum. It gives other folks a chance to vote on ideas so that we can respond to demand. :) Thanks! Meg Link: feedback.mruniversity.com/forums/256087-suggest-a-course
Thumbs up I haven't listened to the video but for a few seconds but to comment while I have the patience. I'm here because I'm taking my first macro course in college and its super complicated but this video makes sense thanks.
Yes. If the price of an input increases, the cost of the activity which needs that input has increased. When the cost of an activity has increased, regardless of whether that activity is production or any other kind of activity, all other things equal, people are going to do less of it. Let's say I am going to the cinema every other week, and stay home watch TV every other week. I alternate, and overall I go two Sundays per month to the cinema and the other two Sundays I watch TV. The cost of going to the cinema is the price of the cinema ticket plus the price of the bus ticket. If the price of the bus increases enough, the cost of going to the cinema increases. I might go to the cinema only once a month and watch TV three Sundays per month.
Concerning tax: Why does it necessarily increase the demand curve and not just the minimum amount a seller wants for his good/quantity? The input costs actually raise the cost for creating a good, however the tax does not - it simply lowers the sellers surplus.
I really think it was a bad exemple when you said that a new modified seed would allow supply to increase. If a modified seed would allow to use less fertilizer, the company would problably want to charge more in order to share the productivity gain with the costumer, hence an increase in price for the same quantity demanded is more likely. In addition, she would need to pay for the development of the seed and et cetera.
"share the productivity gain with the customer" lmaooo; The example was made with a world in mind that wants to maximize the value for the consumer by any means necessary, not putting more cash in your wallet and calling it generosity.
Yes, I agree, not a good example. The fact that GMO seeds require less water does not (necessarily) mean the cost to produce them goes down, but rather that they are more valuable as a crop. This is assuming that "require less water" means the plants require less water. But, that might also mean that seed production becomes cheaper, since making seeds involves growing plants too. So yeah, not a very clear example.
This explanation of the response of supply to changes in price and taxation works well for labor, capital goods and consumer goods. But, what about nature? What about land, which has an inelastic supply curve? Absent a high annual tax on the rent of land, owners of land will often withhold land from the market as prices are rising. This is particularly the case when land held has been acquired decades or even centuries before. The holding cost is very low and there is no financial pressure or incentive to bring the land to market, even under a leasehold arrangement that would permit periodic increases in ground rent charges in response to the increased demand for land. Land markets are the achillees heel of the neoclassical assertion that price clears all markets. Edward J. Dodson, M.L.A. Director School of Cooperative Individualism www.cooperative-individualism.org
I thought as cost increase the supply increases because consumers are willing to pay more so suppliers are willing to produce more.... explain if im wrong plz...
