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

Supply is relative to demand.

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

The supply demand balance is relaxing.

And then more people buy.

What we have here is something I just learned called the law of supply and demand.

I understand the concept of supply and demand.

Supplies cannot keep up with the demand.

The supply can not keep up with the demand.

So I'm going to let you think about that a little bit.

Prices depend on supply and demand.

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

There is close relationship between supply and demand.

Supply will soon overtake demand.

Present supplies of fruit are short of requirements.

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

You stuff that down your shorts, when you go into a football game you can get booze in for free, everybody bought them.

So we've analyzed the hour by hour power demand and supply,

So this is bizarre.

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

Recently the demand for this product has increased faster than the supply.

And it considers just using existing hydro to match the hour by hour power demand.

And my argument there is that's normally the case.

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

If someone did this enough, then this would increase the supply of apples here so supply would increase in this market and in this market the demand will increase because there's someone who keeps buying in this market and selling into that market

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

The current imbalance between supply and demand is considered to reflect structural changes on the demand side, rather than being a cyclical phenomenon.

So, what I just told you is we can now reduce 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.

Everybody needs a cell phone.

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.

Right here we're talking in microeconomic terms, but then if we think about aggregate supply and demand, so this is aggregate, so this is, let me write aggregate, aggregate right over here, this is price, this is real GDP, this is our aggregate demand, aggregate, aggregate demand.

And so what this will do, all of this will shift aggregate demand to the right.

And when we think about this, we don't want to think of it from a demand point of view, because we're talking about supply.

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.

And you might already notice that that I was careful to say quantity supplied

Well for the price of anything to increase, what has to happen?

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

I am paid by the week.