The Equilibrium Price and Quantity

Рет қаралды 960,017

Күн бұрын

In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the price is stable and gains from trade are maximized. When the price is not at equilibrium, a shortage or a surplus occurs. The equilibrium price is the result of competition amongst buyers and sellers.
**TEACHER RESOURCES**
Supply and Demand 5-day HS unit plan: mru.io/8ue
Assessment questions: mru.io/principles-b1be1
EconInbox, a free weekly email of class-ready news articles, videos, and more: mru.io/econinbox-3ba48
More high school teacher resources: mru.io/high-school-4fa52
More professor resources: mru.io/university-teaching-c6b5f
**CONTINUE LEARNING**
Next video-Understanding the Demand Curve: Shifts and Consumer Surplus: mru.io/demand-f58d7
Practice questions: mru.io/equilibrium-price-8d047
Full Microeconomics course: mru.io/cp1
00:00 Equilibrium Price and Quantity
00:55 Buyers and Sellers
01:21 Surplus Example - Price is Too High
01:54 Shortage Example - Price is Too Low
02:36 Properties of Market Equilibrium

Пікірлер: 150

@roronoalkosi6293 7 жыл бұрын

Wooow, i missed two whole months of class, i was completly lost in economics,, after watching your videos i understand better than my classmates, they are even surprised ! Thank you !

@MarginalRevolutionUniversity 7 жыл бұрын

Glad we could help, Roronoa! -Meg

@thebutterflyNL 7 жыл бұрын

what did you do two months lol?

@soccerchick9841 6 жыл бұрын

and your instructor didn't administer withdraw you?

@PapaJenkinz 7 жыл бұрын

Wow u can really learn anything on KZfaq

@PapaJenkinz 3 жыл бұрын

@Sadib Islam what’s up!

@PapaJenkinz 3 жыл бұрын

@Sadib Islam good man you? you r name rings a bell, did we use to play games together?

@PapaJenkinz 3 жыл бұрын

@Sadib Islam haha, good to hear man. hope you and your family are safe and well

@1001spencer 7 жыл бұрын

Just a quick note to anyone watching, the waste he describes is called a dead weight loss. This dead weight lost would also occur if buyers/consumers were not buying and selling goods below the equilibrium price

@fireemblem2770 3 жыл бұрын

What valuable information!! Will put this in my notes, thanks you good pal!!

@sahilakhtar8815 2 жыл бұрын

Thank You So Much!

@TheTyrellWellick 4 жыл бұрын

Omg, how are your videos so good? I searched all the paid course sites and found nothing decent apart from an overview to the Austrian school. But you just provide such a great comprehensive introduction for free! Thank you so much!

@chanelsings83 8 жыл бұрын

This is making my class so much easier to understand. I answered 4 out of 4 correct by the way!

@suewaynemiller1520 6 ай бұрын

how you know the answers are correct

@makessense7095 4 жыл бұрын

"Oh no!" ok ok enough with the goofy sound effects bwahaha

@kamarelarbaouimrabet 2 жыл бұрын

Thank you for your video!! After 6 months of studying, tutorials, books ... I even thought I was stupid, it literally took me 4m of your video to fully understand!!

@karkar2006 5 жыл бұрын

Thank you thank you thank you!!! I’ve been struggling in economics especially with the equations and I’m so thankful to have found this channel. Seriously thanks!

@jemilahv8320 8 жыл бұрын

This is gold! I suck at economics and don't understand my teacher. Let's hope I do okay in my test today...

@rolexshadow 5 жыл бұрын

I have a midterm in less than 30 min and learning so much in these last few minutes, thanks.

@LoneStarStinger 10 ай бұрын

Did you make it though?

@rolexshadow 10 ай бұрын

@@LoneStarStinger not only did I made it through. I graduated!

@timmelon8108 7 жыл бұрын

I am in my first week of my postgraduate study, we just finished one lecture about economics on Monday and I have a homework need to submit tomorrow but I know nothing about economics before !Thank you so much for saving my life!

@nahianrahman1268 5 жыл бұрын

I have am exam tomorrow, and these videos are helping so much! THANK YOU

@Froziox 6 жыл бұрын

Awesome....feels like I m in love with economics and your voice is so attractive it's so easy to understand everything. Thank you

@ricardo.chaverra Жыл бұрын

I'm new into knowing a little bit of economics, and I recently read Misbehaving by Richard H. Thaler, which talks about behavioral economics and how this "invisible hand" concept that gets the market back into equilibrium is flawed, because it doesn't account for consumers' lack of basic economic know how/shopping around for the best deal. I'm new to the channel, so far i like it but this video does feel a little outdated, it will be nice to see an updated version that takes peoples choices into account.

@osk3i 4 жыл бұрын

in 3 short videos, you covered more than what my uni class did in 4 weeks!

@stephaniesilva3320 3 жыл бұрын

Your videos are so helpful, thank you! The animations help me understand the concept better.

@AcaciaStrain4 6 жыл бұрын

That "Yeah" at 3:50... I swear that same exact "yeah" can be heard in the original Twisted Metal on PS1.

@berke-ozgen 5 жыл бұрын

Perfect explanation, quite comprehensive.Thanks

@100Bald 5 жыл бұрын

this deserves a million subs

@annerenoberes1135 2 жыл бұрын

Awesome and Nice...... I feel like I'm in love with economics because through this video it's so easy to understand everything.... Thank you💖😊

@andrewlittle9569 7 жыл бұрын

I think I understand this a little better now thanks to these awesome tutorials

@virendrachaudhary5832 5 жыл бұрын

That is what I was finding. Thank you SOoo much.

@antonettefrancis9019 8 жыл бұрын

this really make me understand thanks and keep up the good work I wish you we're my teacher

@abdulrafio109 7 жыл бұрын

I would say just wow. Worth watching thanks :)

@babyj127 8 жыл бұрын

That's so clear...thank you!

@25rada 4 жыл бұрын

really good one ,crystal clear concept Thank u

@The007asraaf 2 жыл бұрын

Thank yu so much for this explanation. Best explanation ever!!!

@kijapole2845 5 жыл бұрын

Thanks, you backed me to class again.

@MrSaeedkhan5139 7 жыл бұрын

It is just brilliant from you Guys... U r great Thanks alot

@franklyn0110 Жыл бұрын

True mastery of a topic means you can explain it in the simplest of terms

@mayam4480 4 ай бұрын

Perfect teachers.

@schneed5165 4 жыл бұрын

Great video, thank you!

@fahimchowdhury2728 Жыл бұрын

Awesome❤️❤️❤️. Love from Bangladesh 🇧🇩❤️

@shannonwu6876 8 жыл бұрын

this helped so much thank you

@giorgigudiashvili4876 4 жыл бұрын

The drastic decrease of views on the following video makes me feel good about myself.

@baptistechk 3 жыл бұрын

Thx for the video, good job!

@Jimothy-723 Жыл бұрын

my god. we seriously need to use this type of course as a model for total education reform.

@srirang4605 2 жыл бұрын

Holly Molly!! I love this intro!!!😂

@tisi4635 9 жыл бұрын

Thanks for your useful video. I just didn't understand what was the meaning of Adam Smith's "Invisible hand"! I appreciate if you can explain the simple meaning of this special metaphor.

@MarginalRevolutionUniversity 3 жыл бұрын

***TEACHER RESOURCES*** Supply and Demand 5-day HS unit plan: mru.io/few Assessment questions: mru.io/principles-52be0 More high school teacher resources: mru.io/high-school-885cb More professor resources: mru.io/university-teaching-39996 ***CONTINUE LEARNING*** Next video-A Deeper Look at the Demand Curve: mru.io/demand-9fe6d Practice questions: mru.io/equilibrium-price-db048 Full Microeconomics course: mru.io/rqj

@reemmostafa2970 6 жыл бұрын

Thank you.. u r the best 😍

@C3yl0 2 жыл бұрын

This is amazing! I love Economics! 🤭👽♥️♥️♥️

@Ignaciodev 7 жыл бұрын

thank you now I understand

@olajumokealbert6578 2 жыл бұрын

Best economics teacher

@LeoKasper426 2 жыл бұрын

Dude I learned more in this lesson then two days at school

@MN-si8jk 8 жыл бұрын

How do i find market equilibrium price and quantity if i have two demand curves one one graph?

@vitalrf3602 4 жыл бұрын

I just read a 420 pages long book and these videos are easier to understand than my book in microeconomics

@paolo9384 8 жыл бұрын

I'm a young student and i found your lesson very brilliant! But i have a question: does it exist a point where the surplus of consumer and surplus of producer reaches 0 as a value? When does it happen?

@kayla-fi1dn 2 жыл бұрын

youtube teachers are better than professors aka this guy ^ thanks

@mohamedinshaff1904 6 жыл бұрын

thanks a lot for helping me

@VrilWaffen 4 жыл бұрын

How do you determine prices when supply and demand cancel each other out?

@Mranonymous9 3 жыл бұрын

WOW just WOW and thank you

@johnalexisfranco8265 3 жыл бұрын

Wow. this sums up the 20 pages I read. Understood better too!

@DiyaGupta 3 жыл бұрын

Thank youuu great videos

@zackolguin3916 6 жыл бұрын

Is finding the equilibrium something that always happens over time or is it something the businesses can calculate and nail right away?

@ahmedfathalla2776 7 жыл бұрын

great job thank u

@melona3977 Жыл бұрын

nice video thank you

@GS-zx1kk 8 жыл бұрын

Many people over look the marketing aspect of economics. Sociology plays a big part on sales.

@tariqallawati4414 3 жыл бұрын

this made economics much easier

@vellam8766 4 жыл бұрын

😄 ooooh ahhh😂. this is the most entertaining video on equilibrium.

@GforGenius_ 7 жыл бұрын

does every form of market reach to the equilibrium price?

@kainzed7383 7 жыл бұрын

I love you guys

@isabelzondai 2 жыл бұрын

I can't count how many things I learned on KZfaq than at school!

@tGoldenPhoenix 3 жыл бұрын

thank you

@Absolutely_awesome672 3 жыл бұрын

DAMN I learned this easier on KZfaq than reading 4 pages out of the book

@yogevnach 4 жыл бұрын

this is good!!!!!!!!!

@blubbfisch98 7 жыл бұрын

I love you!

@harunaissifu6976 4 жыл бұрын

Fantastic

@timfronimos459 Жыл бұрын

Do you have a video that explains Inflation?

@shahshadranj_Remakes4life 4 жыл бұрын

Hi.tnx for your video. Say me about. If our P,price,10 Q. Demand 100. If .price 11. Demand 80. I don't understand about that . Thanks 🙏

@snowy-g9p 5 жыл бұрын

this feels like it is not always true here in america things like drug prices are extremely high but the cost of production is insanely low you can create artificial prices by increasing the price of drugs then lowing it slightly but still having it be insanely high and because its something people need, demand will still shift to being profitable.

@old_romans 3 жыл бұрын

Interesting note: after working in Auto Parts for 15 years, I wanted to point out that the price of gasoline does fluctuate, however, quarts/bottles of oil never go back down...they always increase in price. I always that that was pretty messed up.

@hadikhan6917 4 жыл бұрын

I would say just wow.

@utopianintallect6219 9 жыл бұрын

who is teaching the lesson alex tabarrok or tyler cowen

@clockfixer5049 4 жыл бұрын

But how is equilibrium price determined?

@mohanish007 3 жыл бұрын

I didn't understand part at 1:44 . Why does the supply has to decrease when sellers sell their products at lower price. They will still have marginal benefit when they sell same or more about of goods.

@ghostofpast550 3 жыл бұрын

Well the demand is at $50 so the sellers who sells at that price can only make money considering that the production cost is lower than that price. The seller who don't decrease their price won't get to sell their product.

@ghostofpast550 3 жыл бұрын

The demand isn't exactly at $50, buyers always want to pay less so they are not going to pay more. At $50 they are somewhat satisfied fied with the price.

@ghostofpast550 3 жыл бұрын

Also similarly sellers also want to profit more so they want to sell at higher prices, below $50 they are not willing to sell their goods. If they do not sell their goods no one will get to buy their good, people who have money and need the good badly are going to pay more. As sellers were willing to sell at $50 this buyers are willing to pay $50 thus the equilibrium.

@user-tv7tq8si6f 7 жыл бұрын

Thanks for your videos, but I have one misunderstanding about this one-- why more valuable oil are wasted by making rubber duckies when the quantity beyond equilibrium quantity. Thank you!

@Mh05Rider 7 жыл бұрын

they dont weast it by making it they make them on consumer demand some of the consumer demand for it so they have to produce them

@fredericosilveiramachado5792 7 жыл бұрын

Vedant Kharje

@Andy-em8xt 4 жыл бұрын

Rubber duckies may not be the best example. But essentially you're taking oil that took $50 to extract and turning into products that are worth $30. $20 of value was lost/destroyed.

@egyMag1990 7 жыл бұрын

I don't thin this curve can be applied to all goods some times sellers can lower the price and the quantity stay the same and the opposite

@james1098778910 5 жыл бұрын

you shouldn't the business produce above the equilibrium price and produce as much as demanded?

@havenofiadagad5841 5 жыл бұрын

No cause he would loose money, and nobody will buy from him

@ffletch5277 2 жыл бұрын

Our president Brandon needs to watch this video a few times until he learns it.

@fireemblem2770 3 жыл бұрын

It can take a few viewings, but eventually it will be as clear as can be… Also, SALE TIME!!!!!!

@PragmaticWays 7 жыл бұрын

Can you be my substitute professor for the rest of the semester?

@MarginalRevolutionUniversity 7 жыл бұрын

Sort of! We've got a full Micro course playlist here: kzfaq.info/sun/PL-uRhZ_p-BM4XnKSe3BJa23-XKJs_k4KY Good luck in your course! -Meg

@moodifi 7 жыл бұрын

Als ersetze das Programm nicht jegliche Professoren

@user-ld7rd7rn6u 6 жыл бұрын

LOL!

@fascinatingniceview5844 6 жыл бұрын

👍

@Fonseca429 8 жыл бұрын

How could the oil price be $50?

@anouarelmjabber9922 8 жыл бұрын

if the demand for oil is high and the supply is low,the price can reach the 50$ and more

@maggotoftool Жыл бұрын

All videos are fucking good. Thank you I guess 1:17 buyers should be ↑↑↑↑

@tranngochung8508 5 жыл бұрын

Anyone know what app used to make this kind of video?? Cuz i gonna do video project like this

@anderserk 7 жыл бұрын

well, at the end you refer to Adam Smith and the invisivble hand. In his book "The wealth of nations" he mentions the invisible hand only in another context, explaining why the free movement of capital can not be expected, since the hand in question would stop capitalists from taking risks in very foreign environments! Check it out! Does he use it in the mostly assumed way in another context somewhere? Not to my knowledge.

@riyakanwar1101 3 жыл бұрын

Sir please upload full course of class 12 also

@ghostofpast550 3 жыл бұрын

They are situated in America, they do not know what class 12 means. Plus there is no microeconomics in class 12.

@maxwelltoshach8208 3 жыл бұрын

Of course, all of this assumes that everyone is acting in their best interest.

@EIIjot 8 жыл бұрын

HEY! I got 89% instead of 100% in my test because of you!

@MarginalRevolutionUniversity 8 жыл бұрын

+Elliot Halpenny What question did you miss? Thanks, Mary Clare

@juhanaislam7884 3 жыл бұрын

2:38

@justinsandolph4861 7 жыл бұрын

but I don't understand I got confused

@serdargokhansenbay143 6 жыл бұрын

çok güzel ya ı am from turkey eee

@teacherosei9930 8 жыл бұрын

actually it explain it better but just that teacher talks fast .

@gauravmohan9271 2 жыл бұрын

Waaaaoooooooo…

@adrianomattia5625 7 жыл бұрын

i'm just 14 and i'm watching this lol

@MarginalRevolutionUniversity 7 жыл бұрын

Never too early to start learning econ! :) -Meg

@adrianomattia5625 7 жыл бұрын

Well said! Econ is really interesting. -Adriano, from italy

@abdulahadshabbir2618 7 жыл бұрын

I wish people from countries like mine, (Pakistan) emphasized more on econ as a PRIMARY subject in schools...can't really figure out HOW can a society at large make a rational decision without having adequete knowledge of economics? Great work...love u guys, thank you

@MarginalRevolutionUniversity 7 жыл бұрын

Thanks, Abdul! I totally agree with you. Unfortunately, I think that economics education is sorely lacking at all levels around the world. Here in the U.S., it's not offered in many high schools, or might get a few weeks attention as part of a Civics course. I think we'd all be better off if kids started learning basic econ at a very early age. -Meg

@abdulahadshabbir2618 7 жыл бұрын

Marginal Revolution University ofcourse...when people have no idea of basic factors that determine their long and short term future, they start making silly choices...specialy underdeveloped countries like mine where people choose govt.subsidy running multi million PKRs bus service over health and education.Anyways, long story...thank u once again.