Supply is relative to demand.

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

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

Let me write that in green.

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

Imported cars are in strong demand.

They decide to sell their house.

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

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

Scenario E, I raise it to 10.

These goods are in great demand.

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

There is a great demand for gasoline.

This is what we call the DEMAND SCHEDULE.

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

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.

The supply can not keep up with the demand.

There is no market for these goods in Japan.

Supplies cannot keep up with the demand.

We could charge 4.50 for the book.

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

Here is the demand forecast for 1998.

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

The supply demand balance is tight.

WRlTING Demand goes up.

There is more people that have money in their pockets.

So it's shifting demand to the right.

There is only a poor market for silk now.

There is a great market for rice in Japan.

But clearly, what's going on right now is just a wholesale printing of money.

So income goes down, demand goes up.

Because you're creating artificial demand.

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

So this right over here.

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.

And so, it would increase the demand.

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

And the long transition is already well under way.

There is a big market for coffee.

We're going to be talking about how to size the market at the end of this lecture.