Normal and inferior goods | Supply, demand, and market equilibrium | Microeconomics

Normal and inferior goods | Supply, demand, and market equilibrium | Microeconomics | Khan Academy

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12 жыл бұрын

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How the demand for some goods could actually go down if incomes go up
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Пікірлер: 133

@dandiaran 2 жыл бұрын

I've been using Khan Academy since High School. Now I'm a Grad student (master's), and I keep coming back every time I need to study for my exams. Thank you for simplifying everything for us throughout these years, Sal!

@maemueller3962 2 жыл бұрын

im in the same boat as you, this channel never fails regardless of your level in school

@musak.4068 Жыл бұрын

Amazing!!!

@skatedude74 12 жыл бұрын

why do I even go to highschool? I could just sit at home watching these videos for 8 hours a day and then go and get a GED

@lazywarrior 4 жыл бұрын

because you might watch this for 1 min and instantly go to p***hub for the next 7h 59min or even more than that

@plasmaismehname1834 4 жыл бұрын

@@lazywarrior im dead

@blast2686 4 жыл бұрын

Can Z lmao

@josephpostma1787 3 жыл бұрын

@@lazywarrior I am confused.

@arjundas1461 3 жыл бұрын

@@lazywarrior 😂😂😂😂🤣

@khoitrinh8009 3 жыл бұрын

You just summarize all of my lectures in 5:55 mins. Give a bravo for awesome channel

@LividImp 12 жыл бұрын

Q. Why do Yugos come with heated rear windows? A. To keep your hands warm while you're pushing them.

@firecracker591 11 жыл бұрын

you are always the only one who can explain things a proper way !!

@drbertdelgado 9 жыл бұрын

Very Helpful. Thank you.

@PercivalHoward 12 жыл бұрын

You have improved my life. Thank-you Khan Academy

@Ankit-ev5qj 8 жыл бұрын

Very Helpful for my Economic class !

@jada5408 3 жыл бұрын

This is very helpful for me right now, because tomorrow I have level1 test.

@strellix2950 2 жыл бұрын

You made my day by Forcing me to love economics :)

@HarjeetSingh-ve5mh 6 жыл бұрын

Its so simple to understand thanks sir

@kajendraprabamuthuvisayan5290 5 жыл бұрын

Thank you so much. you have explained In a way that I can understand. 😊👍

@Mladjasmilic 12 жыл бұрын

It isn't so bad . My family has one since '88 . It was bought my grandfather when my father pased his driving exam, I grew up with it . It survived bad Romanian gaosline during war (half gasoline , half kiwi die with wather ; gasoline die here is green) . Now I drive it , it is god car to have fun in , it goes off-road during picnics . 4 people can carry it around . And parts are found everywhere . Best of all , it has room for Ford Mondeo V6 .

@liyandiaye4122 2 жыл бұрын

Super good for IB student !

@Thegamemakur 12 жыл бұрын

Thanks I love economics!

@svenjag2954 8 жыл бұрын

Very helpful. Thanks :)

@MichelleCN_ 5 жыл бұрын

Excellent explanation, thank you

@piyushsehrawat1379 4 жыл бұрын

Thanku sir You have clear my all doubts

@MrMbathaOk 2 жыл бұрын

Thank you Khan Academy!

@sifuerasmia. 2 жыл бұрын

Big help! Thanks much.

@stevenyu5556 6 жыл бұрын

the Chinese subtitle is awesome!!!

@marceladuenas1284 7 жыл бұрын

very helpful!!!!

@MrTigerman08 12 жыл бұрын

Thanks Khan for posting this :)

@rierwarrir897 2 жыл бұрын

It's Really great sir👍 Now I'm easily cracked up this type of questions in cgl papers 📃

@EVB_PRINCESHARMA 2 жыл бұрын

Awesome 😊 explaination

@lavishjain0605 5 жыл бұрын

Thank u sir,ur video helped my doubt clear

@XxHamletJacobsXx2022 12 жыл бұрын

Awesome job!!! i've always wanted to see more videos from the President of Education :-)

@cosmosgato 12 жыл бұрын

Outstanding!

@ChristinaKilgore 4 жыл бұрын

I'd buy the yugo - it looks cool! like a classic Jeep, but less off-roadish

@MrUnix-xf8dq 3 жыл бұрын

No you wouldn't, trust me... that thing barely moves

@lekside1 12 жыл бұрын

Actually studied this in my Economics class in College

@yanjan9952 2 жыл бұрын

good expanation thank you

@moosaiqbal7651 6 жыл бұрын

thank you...

@luciusmkandawire8712 Жыл бұрын

Thank you

@angi_0974 9 жыл бұрын

i got it n thanx

@dareajayi2563 10 жыл бұрын

Thank you so much...I recognize this voice from Khan Academy. I think you should audition for a comedian....I bet you go far.

@elitetech7728 9 жыл бұрын

KEY TERMS IN THIS VIDEO: 1. The income effect: The effect where , generally, an increase in income causes an increase in the demand of a product

@mmmnnn302 6 жыл бұрын

wao nice thanks a lot

@joephrone 12 жыл бұрын

thank 4 this

@NurudeenMusah-dn5lo Ай бұрын

thanks

@Bojl95 12 жыл бұрын

interesting!

@ledmk2 8 жыл бұрын

Nice video

@RbtV92 12 жыл бұрын

@KillerWhaleSFl thats a hell of a point. I didnt think you were looking at it from that perspective.

@itsme5039 5 жыл бұрын

Can you please explain about demand equations??

@MJPerformance88 6 күн бұрын

When income goes down, D decreases and Q increases for inferior goods.

@user-ob6mn2vg3p 5 жыл бұрын

한국어 자막 감사합니다

@user-cq6nn3po9v 2 жыл бұрын

You try to give the video more brightness it will be great if you do

@thygod4920 4 жыл бұрын

Can you be my econs teacher 😔

@animals0feel1pain2 12 жыл бұрын

oh snap. i have that computer. didnt even realize it till near the end

@2waffle758 3 жыл бұрын

The car looks great actually.

@nafisameena1784 6 жыл бұрын

Can someone tell me why the relationship between quantity demanded and income exists for normal and inferior goods?

@coasttv5715 4 жыл бұрын

Gud

@jaiward4869 8 жыл бұрын

You wrote quantitity.

@brianrendon1234 7 жыл бұрын

then why did you watch the video? pendejo

@jaiward4869 7 жыл бұрын

Brian Rendon Huh?

@forrestl5597 6 жыл бұрын

and Prie

@mbrkgns 5 жыл бұрын

what a mistake woowwowow

@raj56736 5 жыл бұрын

Titty :-D

@Exodus1996 12 жыл бұрын

Idk how i managed to be a sub to this channel

@RiyadhElalami 12 жыл бұрын

@KoolAidAnd As I understood Yes

@rnmoates 12 жыл бұрын

Wouldn't the graph on the right stay the same when income went up because the people who couldn't afford the cheapest can now afford it?

@ugustparreangel887 2 жыл бұрын

normal good = complimented: *increased income = increased quantity demand normal goods (more money, buy expensive) *decreased income = decreased quantity demand normal goods (buy less normal goods) inferior good = non complimented: *increased income = decreased quantity demand inferior goods (buy less inferior goods) *decreased income = increased quantity demand inferior goods (less money, buy cheap

@idiotrun1997 12 жыл бұрын

@goldensilverstar But Khan Academy is not inferior, it's superior!

@OwOrphanedSRCE 9 жыл бұрын

superior vs. inferior

@drahkik 12 жыл бұрын

@superduc99 Just make sure to share these videos with everyone that you know. There is hope.

@ZacharySmith89 12 жыл бұрын

@asdfgoogle With all due respect, he implied what you said. He said that the Yugo was an example of an "inferior good", which means that people would purchase it only if they could not afford something better: a "normal good". So, people would question, "A $500 car? Yeah right. What's wrong with it?" but would still buy it if they couldn't afford better. However, if their income went up, per Khan's example, then more people could buy better cars, decreasing the demand/price for Yugos.

@tylerhertz9428 3 жыл бұрын

Thanks Kahn, that's literally the car I drive >:/ (except mine's green)

@blast2686 4 жыл бұрын

So what’s the difference between a Inferior good and a Griffey good

@SpinyNormanDinsdale 12 жыл бұрын

Is a computer a good example of a normal good though? I am only asking because I would assume a higher income would beg for a better computer that can do more things. Compare that to a piece of quality furniture which is more "stable" in this regard....?? Forgive my ignorance if this is totally wrong!

@orcishgreenland5690 3 жыл бұрын

shoutouts to Dan Taylor

@mudasser39 10 жыл бұрын

you sound like Tom Hank's and thanks for the explanation :)

@KoolAidAnd 12 жыл бұрын

So would an automobile that is opposite that of the [Inferior] Ugo, like say a [superior] Pagani Huayra, be considered as a normal good when it's demand is graphed?

@TuciREAPER 11 жыл бұрын

This is what makes be mad , I study economics but i hate all the assumptions , for example we can assume that the laptop is and inferior good because when income is increased people would by better laptops .Still generally how i understand cheap shit is mostly inferior

@ZacharySmith89 12 жыл бұрын

@asdfgoogle Okay, so I have imagined your bell shape. It was annoying because it was sideways, on the y-axis--I agree with Sal that the x-axis should have been price!--I also understood the cause of your bell shape (it would definitely be skewed right--er, up--usually?). So, I now understand where we differ: I see this video as working on the assumption of the absence of price perception for the sake of simplicity/clarity to focus on the affect of income on the demand/price for inferior goods.

@saptarshiacharyya1844 3 жыл бұрын

But can we not apply a similar narrative for laptops as well? When income goes up, people would like to purchase a better and more expensive model right?

@iiovemiku 2 жыл бұрын

and wouldn't the people who couldn't afford the cheapest car in the first place now are able to afford that car when their income goes up, thus replacing the customers that were lost from the income increase?

@RbtV92 12 жыл бұрын

@RbtV92 could*

@ZacharySmith89 12 жыл бұрын

@asdfgoogle Just like your experience, where I live $500 cars have serious problems 90% of the time (like mine!). Because they tend to have serious problems, they are considered an "inferior good". Because they are an inferior good (with serious problems), most people would NOT buy them. We agree on this. I'm not entirely certain why you replied in argumentative tone, because we seem to agree...um, your insistence on a "bell effect", I think, means that you have defined different parameters...

@joanwang614 9 жыл бұрын

that's right, when you have more money, you want to own a better car. not the cheapest one.

@ritikkumar5645 3 жыл бұрын

Hello Joan wang

@Mackberserk 10 жыл бұрын

What about the people who couldn't afford a car at all and did not consider buying one until their income went up, thus enabling them to afford the cheap car? Seems like there would be no net change.

@lifesnotstill5003 10 жыл бұрын

The demand curve shows consumers who are BOTH WILLING AND ABLE to buy the good.

@RbtV92 12 жыл бұрын

@KillerWhaleSFl but then what would define a normal good? goods would be produced by monopolies because there'd be no need to create another good JUST like it. That'd be a pretty dysfunctional society, dont you think?

@ZacharySmith89 12 жыл бұрын

@asdfgoogle But I agree that this--or the last video, in which he discussed variables assumed to be held constant--would have been a good time to introduce the concept of price perception and other irrationalities. Who knows, maybe Sal's the type of libertarian who believes in a completely rational market with perfect information, where everyone has the time to research that $500 car to ascertain its true value, without any doubt of misinformation. XD. Or maybe he'll cover it in the next vid...

@aesutton 8 жыл бұрын

Same applies to laptops tho. You could afford better specs... Their price varies drastically. o.o Inferior good = ramen noodles. Normal good = pepper? idk.

@YaserSamin 8 жыл бұрын

But the factors here are coming into play. He mentioned there is a better alternative for a better car in the market. So obviously with more income people will want to buy something better. But in case of laptop, it's just think that there is only one kind of choice in the market. With more income people would want to buy the laptop because it's one of a kind. Maybe I am wrong or you are right, but from conceptual sense, I hope I have managed to make some meaning out of my comment :)

@kroovyandcal 8 жыл бұрын

Is crack an inferior good and cocaine a normal good?

@Kret4en 8 жыл бұрын

+kroovyandcal You are actually quite close, but I think that cocaine is a luxury good

@nadien7629 7 жыл бұрын

what grade is this stuff for or is it just an explanation.. im in grade 11 and im afraid this video(s) are not on my level 😂

@MaureenLycaon 7 жыл бұрын

I think it's not tuned for a certain grade level. It's simply kind of "Economics 101" -- the very basics of economics.

@RbtV92 12 жыл бұрын

@goldensilverstar i wouldnt mind watching khan even if I sould afford university professors.

@mydogsuger 12 жыл бұрын

Is your first name shaad?

@ruphunk 11 жыл бұрын

I don't agree with this example. When Income increases people will prefer to buy Notebooks over Laptops or may be even high end Tablets or Smartphones. Giffen's Paradox is much appropraite

@sephizinho 12 жыл бұрын

I understand the logic, but you could say that you could get a better laptop aswell no?

@rockYhre 12 жыл бұрын

A buyer comes comes to car dealership and asks the seller to show him the new model of Yugo. - Here you go, this is the latest Yugo model. Buyer: - Does it have air conditioning? Seller: - Yes, it has air conditioning, abs, power steering, seat heater and a button to open wings with which Yugo flies at higher speeds. Buyer: - You f***ing with me? Seller: - You started.

@iiiiiiiiiiii90000000 11 жыл бұрын

Did anyone else notice that he wrote Quantitity at 0:37? quan ti ti ty lol

@wristkiss 12 жыл бұрын

Quantitity lol

@GuGachina 9 жыл бұрын

Use Public transportation instead of shitty car... If income increases people will prefer to own a car(Shitty or good) over talking public transportation... Easier concept to wrap your head around :)

@TheZakev 8 жыл бұрын

+GuGachina Ohh, man. Yougo is the best car :)

@Humiinabox 12 жыл бұрын

@kamikazerus - how come Jewish?

@DynastyJr 12 жыл бұрын

@tubeyou1901 12 жыл бұрын

@LividImp HAHAAHHAHA LOL!

@goldensilverstar 12 жыл бұрын

An example of Inferiority: Khan Academy An example of Normal: The shitty teachers at my school

@dubbleplusgood 12 жыл бұрын

Thumbs up if you misread the title as "Normal and Inferior Gods".

@abdiaden6322 6 жыл бұрын

Incrumb lol

@MXMGamer 12 жыл бұрын

is he a muslim? i'm going to be one today

@DigitizedSelf 12 жыл бұрын

I'd buy a better computer :-/

@johnsmithbushdid911 12 жыл бұрын

@DoctorPlausible More like jewish joke

@Niipazik 9 жыл бұрын

the guy just cant write properly

@lubnahasan4184 9 жыл бұрын

bro u duuuuumb!

@Niipazik 9 жыл бұрын

lubna hasan okay :

@superduc99 12 жыл бұрын

2,457 views in three days. About the same number of views an NBA slam dunk, lady gaga or snoop dogg vids would get in 5 minutes. We, as a generation, are doomed!