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.
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
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.
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.
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.
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.
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 :)
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
@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.
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?
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?
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.
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.
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.
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?
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.
@@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?
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.
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?
@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??
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??
@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.
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?
@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.
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..
@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?
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.
![NLE Choppa - Or What ft. 41 (Orchestra Mix) [Official Music Video]](http://i.ytimg.com/vi/biOFASEgSOM/mqdefault.jpg)
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.
Thanks mate
This is the exact idea i had in todays lesson. Feeling like a genius.
and 9 years ago you thought of the same thing, that's beautiful.
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
@@bhaijet758 so then you get the market equilibrium price in where it is perfect quantity supplied = quantity demanded
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.
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.
You are now my economics professor :D
thanks for getting me through my macro midterm, real mvp
What did you major in?
@@someoneyouknow491 big booty hoes
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
Thank you, Sal, for making Economics so much easier! :-) I am actually enjoying my holiday just doing math, physics, and economics! :-D
How’s life now in terms of academics? Just checking seeing as this is close to a decade ago
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
Understandable.
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.
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.
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 :)
5:15
I'm so happy finally someone mentioned it!
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
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
thank you... very informative
Thank you so much, Mr Mav
@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.
$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?
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?
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?
Because the more you make the cheaper the product is. Because you can make a lot
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.
great presentation..... a great voice.....thanks a ton....immensely helpful....
very nice
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.
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.
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?
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.
Exactly my thought.
@@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?
i love this guy
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.
Only 120 videos left~!
is it done?
@@ahmetkarakartal9563 he defiantly wen places
@@abdullahshawkat943 what?
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?
He's simply not covering that in this video.
@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.
Dang, your handwriting on this computer is better than mines when I'm using a pen 😔
@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??
Did you take it?
Idk if I'm stupid or not but what is driving the price to go up with the supply
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??
Price increasing is the cause, and quantity supplied rising is the effect
Terri Lee did you ever find the answer to your question? Because I 'm thinking the same thing.
Is it the amount that one company would sell, or all companies together?
Purple,
In honour of the grapes.
@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.
U seem like one of them Smart Weebaruoos
Why price increase with supply instead of decreasing.
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?
have my babys
When, where, And how hard?
He or she might be of 2 yrs now
@@pushkarkulkarni4861 make that 4
@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.
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
how do you find the minimum price? anyone please help me, thanks.
I see, said the blind man, sa he bent over and pick the dime up off the sidewalk!!!!
+josh lau does it really matter
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..
The voice sounds little bit like joe from family guy
@GuilhermePottker thanks man, i love you!
@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?
I like your handwriting but I'm always confused by your words ......
Mute the sound and hope you get just the writing
Boom Genius
so replay the video lol. its just like a book. you re-read segments until you understand it.
😲
well am eating grapes while watching this
@Menegoth Or Middle East colonization. It makes intuitive sense.... :|
@pseudonominous Don't talk about things you know nothing about. The importance and feasibility of Mars colonisation has been realised since the 70's.
@maxisking2 Don't tell people what they can and cannot talk about, even on RUclips.
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.
Are you of black heritage ?
Josh Lau LOL
No i am not one of Them Nigerians
I want to be named Bom and for someone to say "I AM LOOKING FOR A BOM" While in an airport
@RagingBubuli Not unless we stop being stupid and invest in Mars colonisation.
OLO
o
Grape farmers gets angry
i liek ur handwitingz1123