Or another way to think of it is, is this entire demand curve.

I should say how price relates to quantity demanded, and how quantity demanded relates to price.

If we talk about an actual quantity, we should say the quantity demanded.

The price varies with demand.

And this table that shows, how the quantity demanded relates to price and vice versa.

Let me write that in green.

Even the new Jack 2 field in the gulf of Mexico would only supply a few months of domestic demand.

Now you can see some of the reasons why I'm optimistic.

This column let me put my price.

When we're talking about a particular quantity demanded we say quantity demanded we don't just say demand

I'm sure some of you out there are economists, and you know all about supply and demand.

And then the last one we'll talk about

And then our short run aggregate supply might look something like this, aggregate supply in the short run.

So we'll put price in the vertical axis and we'll put quantity demanded in the horizontal axis.

If we lower the price of a product, that will raise the quantity demanded of that product.

WRlTING Demand goes up.

There is more people that have money in their pockets.

Prices depend on supply and demand.

Actually, we're going to start with aggregate demand and then start talking about aggregate supply.

Supply is relative to demand.

If it's a little confusing to you right now, hopefully by the end of this video the difference between demand and quantity demanded will become a little bit clearer, and definitely over the next few videos.

And anytime there is less of something, that creates a price rise.

And so, for any given price point, the demand would increase.

Scenario E, I raise it to 10.

And yet what we proved then is the U.S. has more market power than OPEC.

There is a big market for coffee.

There is a great demand for gasoline.

This is what we call the DEMAND SCHEDULE.

The demand was brought down by increases in imports.

When we hold everything else equal, we're moving along a given demand curve.

All the movements stopped at falsifying.

This is the total numbers of cupcakes all of the factories in the market can produce.

And so essentially, it will shift, it will change the entire demand curve.

And so if income goes up for this laptop, the demand will increase.

So this right over here.

We could charge 4.50 for the book.

It puts pressure on water demand.

And Deutsche Bank even said world oil use could peak around 2016.

The price reflects the demand.

The lust denies the need.

So I get to 8 now.

So this demand curve will also have the same shape from the top left to the bottom right it satisfies the law of demand.

It could keep going on and on.

Here is the demand forecast for 1998.

Imported cars are in strong demand.