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

So, income goes up, then that increases demand.

We're preparing to dive.

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

Ladies and gentlemen we are ready for takeoff.

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.

Wheel's up in 25 minutes.

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

Take off.

We will take off in a few minutes.

We'll take off in a few minutes.

They decide to sell their house.

The most impressive spaceship ever, I believe, was a Grumman Lunar Lander.

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

I love to knife some guys.

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

An hour before, those seats might drop down to 99.00, because that plan is leaving, and if we have empty seats, we're not getting any revenue.

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

(jet engines revving)

A helicopter is able to take off and land straight up and down.

Taking off is easier than landing.

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.

It's a bit of a swim to land, but it's doable.

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.

Hell, what if the helicopter hasn't even taken off yet?

Look! There's a plane taking off.

Flight 226 takes off at 10 30.

The plane takes off in ten minutes.

The plane takes off in ten minutes.

So I get to 8 now.

We have launch commit.

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

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

The jets took off one after another.

It took off

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

The supply demand balance is tight.