Supplies cannot keep up with the demand.

Because you're creating artificial demand.

I understand the concept of supply and demand.

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

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

There must be a rational explanation for this.

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

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

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

Well, you're acting that way.

Over that period you are going to double your demand.

This isn't just some random fluke, and it happens in a reasonably organized way.

Either way.

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

Let me write that in green.

Scenario E, I raise it to 10.

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

Some of them are political. Many of them are physical.

It's not about the things that it brings.

You could do it that way.

There has been an explosive increase in the demand for labor.

We're talking about something very similar here.

The whole business it's unreasonable from beginning to end. Quite reasonable, said the Invisible Man.

Tough, yet rational and ethical.

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.

So let's just think about their hypothetical demand curves right now

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

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

Logical, but unnecessary.

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

There's gotta be a rational explanation.

Any reasonable explanations?

This is reasonable.

That's how they create value, is by slamming things together.

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.

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

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