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

So, income goes up, then that increases demand.

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

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

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

So income goes down, demand goes up.

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

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

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

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

They decide to sell their house.

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

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So this demand curve will also have the same shape from the top left to the bottom right it satisfies the law of demand.

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

All right. We have to maintain this sortedness property.

When we go print it out, they should be in order if our tree is working correctly.

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

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

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

WRlTING Demand goes up.

There is more people that have money in their pockets.

An ordered list, let's say it goes from smallest to largest.

So I get to 8 now.

We're not talking about a particular quantity of demand.

And there is a little bit of a negative feedback, if price goes up.

At any given price point, the quantity demanded will go up.

The supply demand balance is tight.

All right. So let's think about this. So we have either ordered list or unordered list.

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And the way we show demand increasing is the whole curve shifts to the right so this right over here demand increased demand went up when income went up.

And those who have jobs are being paid more,

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

So I'll change it from the property bar to 24 point. and reposition.

I'd open questions to the audience.

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

Well, it has to do with Gresham's law of economics.

And then more people buy.

Line up everybody. Line up. Line up.

Let me write that in green.

Scenario E, I raise it to 10.