Law of supply | Supply, demand, and market equilibrium | Microeconomics

Law of supply | Supply, demand, and market equilibrium | Microeconomics | Khan Academy

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12 жыл бұрын

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Introduction to the Law of Supply
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Пікірлер: 94

@blueskies_vanszy 12 жыл бұрын

I think the easiest way of learning this would be that Demand is from the POV of the CONSUMERS whereas Supply is from the POV of the PRODUCERS. Producers are profit-oriented and therefore would wanna increase their prices with the increase in demand.

@nasirulislam9304 3 жыл бұрын

Thanks mate

@elitesnips5225 2 жыл бұрын

This is the exact idea i had in todays lesson. Feeling like a genius.

@elitesnips5225 2 жыл бұрын

and 9 years ago you thought of the same thing, that's beautiful.

@bhaijet758 Жыл бұрын

doubt so when price rise, the supply rise so in demand, when price rise, the demand falls. so...demand fall.. means some people cant buy goods. the producers will lose after get lots of supplier but lots of sells by price rise

@TheodoreJohnKaczynski997 Жыл бұрын

@@bhaijet758 so then you get the market equilibrium price in where it is perfect quantity supplied = quantity demanded

@Benker-gw3mo Ай бұрын

The law of demand basically says that when the price of something goes up, people usually buy less of it. And when the price goes down, people tend to buy more of it. It's a simple rule that shows how price affects how much people want to buy something.

@OriginalMrsniffles 12 жыл бұрын

You are now my economics professor :D

@servognome 11 жыл бұрын

The supply curve is a graph of marginal cost, the minimum price for a supplier is the one where the company works as efficiently as possible. The supply curve can actually have inflection points because of economies of scale. For example the marginal cost to produce 1000 grapes is less than the marginal cost of producing 1 grape. That's because fixed costs like land and tractors can be spread over more units. Note the equalibrium price is still always where the supply and demand curves cross.

@grace9875 6 жыл бұрын

thanks for getting me through my macro midterm, real mvp

@someoneyouknow491 Жыл бұрын

What did you major in?

@annkey4870 6 жыл бұрын

I don't have a clue, how I got here, but I know now I love economics... 💖 For sure taking it on my ib in 2 years

@elladineros3089 3 жыл бұрын

Thank you so much for this, you are a big help to us, most specially during this time that we are using the modular method, self learning module, thank you for sharing this kind of lectureee

@danielocitti7737 4 жыл бұрын

you're right sal about the price being on the vertical axis instead of the horizontal as an engineering student that tripped me up a little

@Veganphobic 12 жыл бұрын

I'm not even going to lie I just made a file on my Ipad strictly for your videos. I don't watch tv. I watch your videos :p

@smritidude 3 жыл бұрын

Understandable.

@hishamalaker491 2 жыл бұрын

As a 14 year old, i am really intrested in this i already saw your video on the law of Demand, i understood it and wrote it on my white board now i need to know about the Law of supply still though thanks for the videos they really are helping me with my hobby.

@memo6032 2 жыл бұрын

5:15 I'm so happy finally someone mentioned it!

@Oscar60x2 12 жыл бұрын

Thank you, Sal, for making Economics so much easier! :-) I am actually enjoying my holiday just doing math, physics, and economics! :-D

@Nonso.forever 2 жыл бұрын

How’s life now in terms of academics? Just checking seeing as this is close to a decade ago

@deonlatchman3283 5 жыл бұрын

thank you... very informative

@neerajdangi6000 5 жыл бұрын

You are helping a lot, but it would be more helpful if the videos are arranged in a chronological order. The playlist videos in an arranged order will also help your videos to get more watchers, as some of my friends are using other channels because of this reason, I thought to tell this to you.

@blava3155 4 жыл бұрын

Idk if this was available when you wrote your comment but now in the description there is a learning playlist that would show you the all videos in chronological order :)

@ChineseAssignment 9 жыл бұрын

Thank you so much, Mr Mav

@hannahguzman8580 5 жыл бұрын

$1 cost of what? to grow each pound of grapes? to buy it in the store? for business owners to buy and sell? which one?

@cportobanco 6 жыл бұрын

Outstanding videos! Would you please guide me with following? Sometime is confusing when referring to price and input; I do understand that input is part of the cost of a particular item. Nonetheless, when referring to price, it is referring to input or selling price. There is any key point to make the difference?

@GuilhermePottker 12 жыл бұрын

@TheGyij2 actually, there is no minimum price, because price will be determined by the supply and demand, and both will also be determined by the price that will act as an incentive to produce or not a certain good.

@Rev0licious 7 жыл бұрын

i love this guy

@reemakumari3086 5 жыл бұрын

very nice

@aylh9917 6 жыл бұрын

why did the quantity supply increase by price, if the price was increasing which mean that the quantity demanded would be decreased, why would they need to increase the quantity supply if there are now fewer people wanted to buy them?

@theouterinn 6 жыл бұрын

As someone who isn't too experienced with economics, please correct me if I'm wrong. I believe the prices in these scenarios are after demand is taken into account; no matter how much they are being sold for, it will always cost the same amount to PRODUCE the grapes, the price is just dependant on the market. Therefore, if you are making more money for your grapes, it will give you more reason to produce more, since you'll have the money to do that. Hope this makes sense, cheers.

@dreamtraveler003 Жыл бұрын

Exactly my thought.

@thanaa6401 2 ай бұрын

@@theouterinn so are we here considering just that the PROFITS are increasing? So when the profit of a farmer increases, he's gonna increase his production. Is it this way?

@fewfaf4214 4 жыл бұрын

Is it the amount that one company would sell, or all companies together?

@shweyiwin6197 3 жыл бұрын

Dear Khan, When the price goes up, the quantity demand falls down. Then why would we provide more supply? Can you explain the relationship between demand, price and supply?

@caidengordon3921 Жыл бұрын

Because the more you make the cheaper the product is. Because you can make a lot

@leesoo-yeon9933 Жыл бұрын

When that happens there is an Excess Supply. Therefore the government intervenes in different ways to bring the production down. For example things like Market Ceiling So before all of this, you should learn about Market Equilibrium. It is the point where buyers and sellers agree to buy and sell goods at a certain price.

@preethamlazarus 9 жыл бұрын

great presentation..... a great voice.....thanks a ton....immensely helpful....

@classified737 11 жыл бұрын

Screw the facts. If Khan says 1000lbs, then we shall produce at 1000lbs. Even if it can result in a great enough shortage to cause the market to crash.

@andrewpersaud4144 7 жыл бұрын

hopefully in the 4 years that passed you researched your grapes and realized there is nothing abnormal with a grape farm producing 1000 pounds of grapes.

@TheGyij2 12 жыл бұрын

how do you find the minimum price? anyone please help me, thanks.

@EpclVIds 6 жыл бұрын

Idk if I'm stupid or not but what is driving the price to go up with the supply

@terrilee5163 6 жыл бұрын

I am also semi confused. It doesn't quite make sense to me that if the price goes up, you would increase quantity supplied, because if the price were to go up, wouldn't fewer people demand that much of the product? Therefore, wouldn't you be left with a surplus of the product if you increase the quantity supplied when no one is willing to buy more of that now expensive product??

@bpsarma 5 жыл бұрын

Price increasing is the cause, and quantity supplied rising is the effect

@NobleOne-cm7lr 5 жыл бұрын

Terri Lee did you ever find the answer to your question? Because I 'm thinking the same thing.

@rajudadadedan4026 5 жыл бұрын

@Khan Academy my question is if the quantity of supply for a particular product which are generally in demand is low than the price of product should be high??

@someoneyouknow491 Жыл бұрын

Did you take it?

@pushkarkulkarni4861 5 жыл бұрын

But why is curve of supply is not going up in steady war by going like a tree i.e why the supply is not increasing in same rate

@hannahguzman8580 5 жыл бұрын

like the price of grapes in stores went up to two dollars so consumers pay more and businesses make more? or it's more expensive to make each pound? why would they make more if it's more expensive? if the price in stores goes up wouldn't demand go down?

@drahkik 12 жыл бұрын

@RagingBubuli Such a short minded view to think that we will never leave the cradle that is the earth and push into the infinite of the universe.

@sarahretzbetham342 2 жыл бұрын

Dang, your handwriting on this computer is better than mines when I'm using a pen 😔

@premierleaguematches4307 2 жыл бұрын

Why price increase with supply instead of decreasing.

@gdogvibes1 12 жыл бұрын

Only 120 videos left~!

@ahmetkarakartal9563 3 жыл бұрын

is it done?

@abdullahshawkat943 3 жыл бұрын

@@ahmetkarakartal9563 he defiantly wen places

@ahmetkarakartal9563 3 жыл бұрын

@@abdullahshawkat943 what?

@skibumwilly1895 11 жыл бұрын

Find the answer in the short film “Mankinder (Occupying Chairlifts)”! A guy working in the white house calls on an underachieving old college buddy, to solve the economy from it’s debt and unemployment troubles. A couple brief conversations with the reluctant skibum corrects the course of humanity’s future. A simple rule tweak on inheritance ends up changing the direction and purpose of modern human life! Watch “Mankinder (Occupying Chairlifts)” on youtube.

@TheGyij2 12 жыл бұрын

@GuilhermePottker thanks man, i love you!

@shad0wfaux 12 жыл бұрын

Purple, In honour of the grapes.

@insomnianetwork6259 8 жыл бұрын

+josh lau does it really matter

@GuilhermePottker 12 жыл бұрын

@TheGyij2 according to Adam Smith, price will be the sum of wages, profits and wages. and the minimal values to these will be the minimum quantity necessary for the subsistance of the worker, the capitalist, and the landowner. but he's somewhat wrong in this point, because he doesn't distinguish profit from interest, as Eugen Ritter von Böhm-Bawerk did later.

@manaickillerdraciaux7582 7 жыл бұрын

U seem like one of them Smart Weebaruoos

@ramifarawi6016 8 жыл бұрын

Quick question. So when he sets a price for each quantity, what determines that price? What factors go into determining that price? Another instance is the price for barrels of oil. How do prices change for a good when the supplier isn't the one changing the price and only the amount quantity sold?

@MaureenLycaon 7 жыл бұрын

He's simply not covering that in this video.

@evaflores2866 2 жыл бұрын

😲

@jjbox370aa 12 жыл бұрын

I see, said the blind man, sa he bent over and pick the dime up off the sidewalk!!!!

@maxisking2 12 жыл бұрын

@Menegoth Unless ofc, im telling people not to talk about telling people what to talk about. Thanks for the advice internet manners police, sorry for the trouble officer.

@moestietabarnak 12 жыл бұрын

pretty naive law, I guess it's why you call it intuitive. There so many parameters that can nullify it, I don't think it can be justifying called a 'LAW' You can say 'as price rise, producer are willing to produce more" ..willing, that's it. nothing in there guarantee that they CAN..

@epicstyle4657 7 жыл бұрын

have my babys

@manaickillerdraciaux7582 7 жыл бұрын

When, where, And how hard?

@pushkarkulkarni4861 5 жыл бұрын

He or she might be of 2 yrs now

@amberrae2903 3 жыл бұрын

@@pushkarkulkarni4861 make that 4

@volzgang 6 жыл бұрын

The voice sounds little bit like joe from family guy

@EmotionalContagion 12 жыл бұрын

@Menegoth Or Middle East colonization. It makes intuitive sense.... :|

@venkyyyyy 12 жыл бұрын

well am eating grapes while watching this

@simplejeff 3 жыл бұрын

OLO o

@xxczerxx 5 жыл бұрын

I think this is why I dislike a lot of economics, these so-called 'laws' are so tenuous when you take real life into account. I am an awful abstract-thinker though. Same thing with things like General Equilibrium, the heterodoxy schools of thought have a far better bearing of reality to me.

@Menegoth 12 жыл бұрын

@maxisking2 Don't tell people what they can and cannot talk about, even on KZfaq.

@maxisking2 12 жыл бұрын

@Menegoth Its youtube why the fuck are you arguing about mars colonization, the man is talking about grapes. Who cares how the grape market will fair in a martian economy?

@Menegoth 12 жыл бұрын

@pseudonominous Don't talk about things you know nothing about. The importance and feasibility of Mars colonisation has been realised since the 70's.