And if there's more cash in the banking system this guy right over here needs less

So if you expect if before you thought prices were going to be roughly constant, and now you expect them to go down, now you are gonna say wow,

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

Supplies cannot keep up with the demand.

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

Let me write that in green.

Scenario E, I raise it to 10.

It raises supply because some people maybe just took some of this cash and deposited it.

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

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

And both of them satisfy the law of demand if the price is really high the quantity demanded is going to be really low for the laptop and so it might be right over there and if the price is low the quantity demanded is going to increase.

Doesn't seem to be much demand for humans.

The supply demand balance is tight.

They decide to sell their house.

WRlTING Demand goes up.

There is more people that have money in their pockets.

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

There is close relationship between supply and demand.

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

I'd rather have than just getting more of this thing right over here

So, income goes up, then that increases demand.

And I had this captured market. You didn't need contracts.

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

This column let me put my price.

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

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

Here is the demand forecast for 1998.

Imported cars are in strong demand.

All the movements stopped at falsifying.

This is an actual model where we can be asked to optimize what happens.

So income goes down, demand goes up.

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

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

Ultimately, Coke's success depends on one crucial fact and that is that people want a Coca Cola.

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

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

Supply is relative to demand.

The price reflects the demand.

These goods are in great demand.

There is a great demand for gasoline.

The lust denies the need.

And then the last one we'll talk about

So it's shifting demand to the right.

So I get to 8 now.

This is what we call the DEMAND SCHEDULE.