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

The price varies with demand.

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

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

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

And then the last one we'll talk about

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

WRlTING Demand goes up.

There is more people that have money in their pockets.

Prices depend on supply and demand.

Supply is relative to demand.

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

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

Let me write that in green.

Scenario E, I raise it to 10.

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

There is a big market for coffee.

This column let me put my price.

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

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

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

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

All the movements stopped at falsifying.

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

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

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.

Pull me!

Pull.

We could charge 4.50 for the book.

The price reflects the demand.

The lust denies the need.

So I get to 8 now.

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

The supply demand balance is tight.

They decide to sell their house.

And in those cupcake economics videos, I showed that if the demand is pushing up against capacity.

When everything else is equal and you're only changing price, you're not changing demand.

There is a great demand for gasoline.

This is what we call the DEMAND SCHEDULE.

The demand was brought down by increases in imports.

So income goes down, demand goes up.

So, it would shift the demand curve to the right or it would increase demand.

Price depends on costs and demand.

Prices depend on the costs and the demand.