Changes in equilibrium price and quantity when supply and demand change | Khan Academy
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- เผยแพร่เมื่อ 11 พ.ย. 2024
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Previously we looked at what happens to the equilibrium price and quantity in a market if supply or demand changed. In this video, we explore what happens when BOTH supply and demand are changing at the same time.
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AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!
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![“อ.เบียร์ คนตื่นธรรม” มาตามคำเรียกร้อง แหกศาสตร์ฮวงจุ้ย เตือนสติอย่างมงาย | แฉ 7 พ.ย. 67 [1/3]](http://i.ytimg.com/vi/5fc4S3xBNfc/mqdefault.jpg)
This man taught me in a 6.15 min video what my professor couldn't explain in 8 hours of class. THANK YOU KHAN!!!
No cuz this is too true 😭
love this one. no bs, no unnecessary "funny" examples, music or whatever.. thank you!
No intro, no music,no asking for subscription. Pure content.
RIP the other 4 graphs that never got to fulfil their lives' purpose.
f
they fulfilled their purpose in other video😅
@@062.jannatulferdausanu7 Please share me the link
In which video
the second part: th-cam.com/video/UQVwgC7MAHM/w-d-xo.html
Thanks bro, you just saved my Econ grade
Amazing. This isn't complicated once it's taught properly. Thanks
Got an 100 on my quiz because of you. Thanks!!
I am an MBA student and currently taking BUSI620 and I came here because I needed a real tutor
3 * 1.5hrs of class time was wasted by my teacher and I understood this in 6 min. What a legendary explanation.
Definitely khan academy is doing a greaatt....greaatttt job...hatts off...and THANK YOU
Wow this was so easy to understand. Im watching this video for a quiz and what i was reading made no sense to me but this is so simple to understand. Thank you!
Thank you so much. I keep overcomplicating econ and it’s stressing me out.
THANK YOU. I’m taking economics right now and I needed help, so thank you 🙏
Thank you! This really helped a lot. I was so confused and didn’t understand anything.
This was so helpful, thank you!
Finally I understand this! Thank you so much!
where are the rest graphs of this video explained?
⭐⭐⭐⭐⭐⭐
1:20 Increased manufacturers
Sal are you God? I Google Bio, Chem, Phys, Econ Latin whatever and this guy pops out
When demand slides to the left, supply goes down.
this video is very useful I watched this video just before my mid term exam and i cleared all my confusions thx
Best video on this topic in TH-cam market , Much Simpler
This helps a lot thank you!
thank you soooo much! I was making this waaaay more complicated in my head lmao. thank you!!!!
Grateful if you show big
Thank you!
this assumes that equilibrium framework is correct in the first place, eg there is a perfect market etc
thank you thank you thank you thank you thank you thank you thank you thank you thank you
WARNING: His notation and use of the word "up" is very misleading when talking about the supply curve. Strictly speaking, when supply "increases" the curve actually goes *down*. It is therefore unfortunate that Khan writes an S with an upwards arrow to indicate an increase in supply, while simultaneously illustrating the supply curve going down and to the right. Guaranteed this is going to confuse students. For basic econ, I recommend that you not think of S as shifting "up" or "down", but rather as shifting right or left, where "right" is an "increase." Instead of short-handing an increase in supply by an "S" with an upwards arrow, he should write an "S" with a rightwards arrow on top. This sounds like I'm nit picking, but on quizzes students will shift the supply curve in the wrong direction because they were introduced to misleading terminology and notation.
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
Helpful videos always..
WITH THE AID OF A DIAGRAM SHOW THAT THE EFFECTS OF DECREASE IN SUPPLY ON EQUILIBRIUM PRICE AND QUANTITY DEPEND ON THE OWN PRICE ELASTITCITY OF DEMAND
I usually loves] these videos but it is concerning to me that most of my teachers specifically state that supply and quantity supplied are two different things. If there is no outside factors, we should be doing movements instead of shift with these scenarios he talks about. Now I’m just more confused :(
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.
Tyy
so help full
so helpful video
Please help me with some questions
What if all persons who eat Ben & Jerry’s ice cream began eating ice cream because of Ben & Jerry’s and if Ben & Jerry’s left the market, they wouldn’t eat ice cream at all? Could there be a demand increase still with the decrease in supply when Ben & Jerry’s leaves the market? If not, is there any ‘commodity’ that behaves like this?
Or, is this a question only relevant in a planned economy?
What will happen to equilibrium price and quality if there is change in supply of a commodity..??
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
Ha
Gaahhhh why is this so hard for me to wrap my head around 😫! This video was helpful, but I still feel shaky on these! So If you were to look at two items that are compliments with each other would an increase in either of the two compliments always produce the same results on demand!? And would the same hold true with two items that are both substitutes for each other? Like for compliments if we were looking at let's say ski boots and skis, would an increase in either ski boots or skis produce a decrease in demand? Conversely would a decrease in the price of either ski boots or skis always produce and increase in demand of the other?
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 :)
Plz someone help me I can't find the video related to those four other graphs
Why does a decrease = line to the left of the curve and an increase = line to the right of the curve?
So what happens if the price of imports increase?
For the 3rd diagram, if more people want to buy/eat icecream, wouldn't the price go down? as per normal economic principles?
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.
My head was spinning. Now Im okayyy
Why would quantity go down when ice cream is thought of as very unhealthy on the last graph? Would producers produce less?
So a major player enters the market and increases supply, but that increase in supply lowers the equilibrium supply? The increase in supply lowers supply? Did I get that right?
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.
But for the law of demand, when the demand decreases, the price increases and vuce versa, why is that for the graph 3 and 4? someone explain?? thank you
you got it wrong brother. when price increases demand decreases but its not vice versa. when demand increases, price also increases
Bhaiyya ji samjaya to acha hai mgr angrezi bohut garhi boli aapne @3:56
please help i an stuck
not wori i wil get ju out stai wer ju ar
sir i cant understand your languge
somehow it does makes sense to me
What was even the point of this one?
Too much information in one page. Its too complicating and frustrating to see so much
I farted
pokemon
@cj9318 acktchually maybe
please narrow down and make it to the point. you talk extra and lower your repetition please its annoying
Hi