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

You see this rising force in sort of total transparency and openness that companies are starting to adopt, all because the consumer is demanding it.

WRlTING Demand goes up.

There is more people that have money in their pockets.

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

I'm prepared to pay any price

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.

Over that period you are going to double your demand.

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

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

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

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

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.

The supply demand balance is tight.

They decide to sell their house.

Price depends on costs and demand.

Prices depend on the costs and the demand.

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

I understand the concept of supply and demand.

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

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

How much would it cost?

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.

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

This column let me put my price.

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

And so let's assume for the sake of discussion that that was 33, 33 to build my product.

So in this situation, let's say, this is capacity.

Here is the demand forecast for 1998.

Imported cars are in strong demand.

All the movements stopped at falsifying.

And so, it would increase the demand.

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

In 2002, they were facing a different battle.

Walt, there's always a way.

We do not release vehicles until all impound fees are paid.

But spin on to the 80s when personal computers did arrive, then there was room for this kind of system on personal computers.

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

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