Supply and Demand

Supply and demand! We've all hear these terms before, and we probably have a pretty solid conception of what they mean. But let's formalize them a bit by looking at the law of demand and the law of supply, as well as the substitution effect, the income effect, and equilibrium price.

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[Brickzot]

We demand that you supply us with more videos.

[joiscode]

I honestly watch these during no school and like it

[krishnannarayanan]

Putting Price on the x-axis and Quantity on the y-axis made so much more sense than how we learned it in school. I was trying so hard to understand and this made it much easier (maybe because I am a science student). Thanks Professor Dave!

[nektu]

Some people prefer to consume (demand) pseudoscience - James Tour offers a bountiful supply. I prefer to see pseudoscience get dunked on - Prof Dave is my supplier.

[youritake]

Im surprised he didn’t say the word inflation even once

[trynagta]

This whole video made this easier to comprehend than reading a textbook. Big thanks Dave! 🙏🏿

[croutqn]

Hey professor Dave, could you do an episode on ayurvedic medicine? I don't know if it's true or pseudoscience, many people seem to believe it.

[SOSplaylist]

Thank you for taking the time to make these videos and providing such a wide spectrum of learning material. You are are skilled teachers that speaks in a clear and concise way.

[ahdcat]

This explains ammo prices right now (and availability)

[sciencenerd]

Thank you for the video. I hope you are having a good summer.

[pprandomnpz]

That works when the products are more or less optional goods. Supply and demand work well in a very naive scenario but reality is that companies can make price changes without much risk for them but it can seriously harm consumers. We don't live in the '50s anymore, this stuff is highly manipulated and studied, usually against the consumer.

What happens if the water supplier decided to increase the price twice fold? Would you stop paying and using water? Even if half the people stop paying for the service they'll still make the same money but now half of the people lost access to clean water.
Or internet providers of wich, unless you live in a relatively big city, you probably will have access to only one company. Or how supermarkets inflate the prices of everything several times what they pay the producer. Or universities and higher education wich simply ask for extorting amounts of money to allow people to get a degree. To that you can add electricity, healthcare and many other stuff.

Not forgetting the fact that most of these price forming companies usually avoid taxes by claiming residence in some tax heavens but are quick to ask for bail outs at the drop of a hat. A lot also tend to have horrible known work policies (sometimes actual slavery) and will make business appeasing autoritarian goverments while screaming for freedom and rights when someone touches their asses. And that's not even mentioning the corporate media wich can, and does, manipulate democracies everywhere.

[matejabrkic]

Frankly, if a slices price increased I wouldn't buy fewer slices, I wouldn't buy it at all.

[elljorgo]

Dave is unreal... How can someone master so many topics...
One of my fav channels! 👌

[jalapenoandbanana]

I guess that pizza shop made too much pizzas but they got *STONKS*

[planetearth]

Can we just mention the animations of the text and pictures and whatnot are simple and amazing?

[ryan]

Thats why there is no gpu's in stock and are double the price ha

[glennpearson]

Love this series. I'm betting the next one in the series will include the term "elasticity."

[tellthemborissentyou]

Now explain why economists always plot supply and demand functions as inverse functions. For some reason they put price on the y axis.

[KGBos]

I’m not sure I understand why the quantity of supply increases with the rise in price. Wouldn’t you want to boost your supply if the price per item is low expecting that customers will buy a lot of it. And if the items you’re selling are super expensive, you can decrease the supply knowing that customers won’t buy as often.

[EnzoVinZ]

My ECON professor made a strong point that demand is not about the desire and the willingness to pay, rather it's based on affordability. He can desire a Ferrari and willing to pay $200k for it, but the question is, can he afford it? The Ferrari will stay at $200k price regardless of how many people desire and willing to pay for it because Ferrari is catering to the market that can afford it. Only purchased products shifts the price in the economy -- his desire and willingness to pay, but cannot afford it, does not. In other words, an actual sale shifts the price. This is why highly desired items going on sale goes out fast because many consumers can suddenly afford it.