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

We can go buy that house.

Why is that important?

In this and the next few videos we're going to be studying something called

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

Today, we deliver enough cleanburning helium3... to supply the energy needs of nearly 70 of the planet.

We must reduce energy 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.

And we're only eight doublings away from it meeting 100 percent of our energy needs.

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.

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

So these are two different levers, two different tools that have been used in governments all around the world to shift aggregate demand one way or another or attempt to shift aggregate demand one way or the other.

Total number of elements

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.

Solar can do it, and we certainly have to develop solar.

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.

Energy need

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.

People will borrow money not to just, like, not to just sit, but stuff it into their, into their mattresses, they'll borrow that money to go invest it in some way, to spend it.

Here is the demand forecast for 1998.

Imported cars are in strong demand.

All the movements stopped at falsifying.

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.

How to meet future energy demand is a big question we must consider.

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.