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. Microeconomics Course: http://bit.ly/20VablY Ask a question about the video: http://bit.ly/1WJ4kPF Next video: http://bit.ly/1Q0Bs3D
Tutorial on how to solve for quantity demanded and quantity supplied using equations (algebra) used in economics class. Demonstration on how to determine equilibrium price and quantity (or market price and market quantity) and points on the demand and supply curves. Like us on: http://www.facebook.com/PartyMoreStudyLess Related Video: "How to calculate Inverse Supply and Inverse Demand http://www.youtube.com/watch?v=cHq3CBLAB-o
Equilibrium price and quantity for supply and demand Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/market-equilibrium-tutorial/v/changes-in-market-equilibrium?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/supply-curve-tutorial/v/long-term-supply-curve-1?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
This video goes over the 4 steps necessary to solve for equilibrium price and quantity in common economic and microeconomic problems. These 4 steps involve finding the demand and supply equations, setting each equal to quantity which allows you to set them equal to each other. This means that you are left with one equation and one unknown. The unknown will be the price variable and once you solve for this you will be able to plug it into either quantity equation in order to solve for market equilibrium. More informaiton on this topic is available at http://www.freeeconhelp.com/2011/09/how-to-find-equilibrium-price-and.html
This video lesson covers the short run equilibrium price level and output. If there is an excess supply of goods and services, prices will eventually decrease back to equilibrium. Sellers are forced to reduce their prices, and consumers will purchase more goods and services. If there is an excess in demand of goods and services, prices will eventually increase back to equilibrium. Sellers will increase their prices, and consumers will purchase fewer goods and services.
Description of equilibrium price, consumer surplus, producer surplus and social surplus using supply and demand diagrams.
Video 6 out of 50 in a complete AS-Level Economics course. This video explains how demand and supply interact to establish a market clearing price. The video covers excess demand and supply and the impact of changing demand or supply on price and quantity levels
We deal with the IS-LM Model to find the effect of an increase in the price level. First, we derive the IS and LM Curves given the increase in P. Then we calculate the new equilibrium interest rate and output/income. Then we use the IS-LM diagram to investigate the effect of the jump in inflation. And we end with some intuition. More Macroeconomics Problems: https://sites.google.com/site/curtiskephart/ta/intermediate-macro-solutions ___________________________________________________________ Consider the economy of Hicksonia. http://youtu.be/_19w5dcGhCo?t=2m30s a. The consumption function is given by: C=200+0.75(Y-T) The investment function is: I=200-25r Government purchases and taxes are both 100. For this economy, graph the IS curve for r changing from 0 to 8 http://youtu.be/_19w5dcGhCo?t=5m30s b. The money demand function in Hicksonia is (M/P)^d=Y-100r The nominal money supply is 1000 and the price level P is 2. For this economy, graph the LM curve for r ranging from 0 to 8 http://youtu.be/_19w5dcGhCo?t=9m c. Find the equilibrium interest rate r and equilibrium level of income Y. http://youtu.be/vx6w5JFIjzw d. Suppose that government purchases are raised from 100 to 150. How does the IS curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/b28lsOUFOtw e. Suppose instead that the money supply is raised from 1000 to 1200. How does the LM curve shift? What are the new equilibrium interest rate and level of income? http://youtu.be/yBBpE8PzoKU f. With the initial values for monetary and fiscal policy, suppose that the price level rises from 2 to 4. What happens? What are the new equilibrium interest rate and level of income? http://youtu.be/5EPvwarCqDA g. Derive and graph an equation for the aggregate demand curve. What happens to this aggregate demand curve if fiscal or monetary policy changes, as in part (a) and (e)? from Mankiw's Macroeconomics (8th ed) - Aggregate Demand Part 2 (Chapter 12) - Problem 3 ----------------------------------------------------------------
A quick and comprehensive intro to Supply and Demand. We define the demand curve, supply curve and equilibrium price & quantity. We draw a demand and supply curve graph - and figure out why they look like they do. We find equilibrium quantity and equilibrium price. This video targets a student in an introduction to microeconomics class. •Video 1: Intro to Supply & Demand: http://youtu.be/op70yS_7du8 •Video 2: Shifts to Supply or Demand Cruves: http://youtu.be/es_g3L1kmR8 •Video 3: Shifts in BOTH Supply and Demand: http://youtu.be/EiYbrhFwErI More Intro to Microeconomics Videos: https://sites.google.com/site/curtiskephart/ta/krugman-wells-microeconomics-solutions ------------------------------------------------------ Video Outline: A "market" with price and quantity. Demand Curve 2:00 • The law of demand. • Increases and Decreases in Demand. 5:30 • Another Video on the topic: Supply curve. • The law of supply 9:30 • Increases and decreases in Supply. 11:44 • Another video on this topic Demand and Supply together. 15:50 • Equilibrium price and quantity supplied and demanded. 16:20 • Forces that tend toward equilibrium. Shortage, 18:15. Surplus 21:20
In this video I explain what happens when the government controls market prices. Price ceilings are a legal maximum price and price floors are a minimum legal price. Make sure that you can draw each of them on a demand and supply graph and identify if there is a shortage or a surplus. Keep in mind that your teacher may use the word "binding" to describe the situation where the price control has an effect on the market. If you need more help, check out my Ultimate Review Packet http://www.acdcecon.com/#!review-packet/czji Next videos showing what happens to consumer surplus, producer surplu, and dead weight loss https://www.youtube.com/watch?v=n0LXkA9kato All Microeconomics Videos https://www.youtube.com/watch?v=swnoF... All Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3... Watch Econmovies https://www.youtube.com/playlist?list... Follow me on Twitter https://twitter.com/acdcleadership