In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the
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.
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Except for the mistakes at 1:35 ("At a high price there is a relatively low demand.") and 1:45 ("As the price goes down the demand for oil increases.") the video is well done.
I have been following online learning for the last 20 years . I have dreamed always a lecture should be just like yours. But nobody provided that . Now I see you do it .
It is really great . But you can do even better than this since you have that mentality . Plus your navşgatişon is so easy . Why don't you monetise it but not a high price . May be $ 100-200 per person is good enough . But you need a brand name university and degrees . How about a new degree like NANODEGREE of Udacity . Thanks billion again . Muvaffak GOZAYDIN
Depends on growth rate of supply vs demand and which one is more elastic. In cases where growth is equal for supply and demand, if demand is more inelastic than supply, equilibrium price will fall and if demand is more elastic than supply, equilibrium price will rise. If supply and demand are equally elastic/inelastic, equilibrium price does not change. Quantity increases in all cases.
Can you site the pages on which Adam Smith uses the term "invisible hand" and what he is stating in each instance of his use of the term?
Demand function Qd = 249 - P
Supply function Qs =P -17
What is the equilibrium price and Equilibrium quantity, show this graphically showing the equilibrium point.
what if everyone valued oil the same way? what if the costs of producing oil were the same to everyone?
Demand would be a straight horizontal line, quantity demanded increases at the same price there will be no increase in demand so increase in price. Supply would be a straight vertical line with exactly that much of quantity to have an equilibrium. There is no incentive for supplier to supply more as there is no additional profit (marginal profit) by suppling more oil. So we come to a stagnant.
Suppose that the inverse Demand Function for movie in arusha city is P=120-Q, for college students and P=120-2Q for other residents, while the supply function for movie in the city is Qs=200+2P then find;
1. Equilibrium price and quantity then show it graphically.