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

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

Let me write that in green.

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

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.

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

Scenario E, I raise it to 10.

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

And this makes complete sense and if income were to go down, demand would go down because people would have less money to buy something like a laptop.

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

We did exactly what we did in the large corporations.

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 then our short run aggregate supply might look something like this, aggregate supply in the short run.

Here is the demand forecast for 1998.

Imported cars are in strong demand.

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.

These goods are in great demand.

So it's shifting demand to the right.

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

I need a place to rest.

There is a great demand for gasoline.

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

This is what we call the DEMAND SCHEDULE.

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.

I'm going to talk about two stories today.

And both of them satisfy the law of demand if the price is really high the quantity demanded is going to be really low for the laptop and so it might be right over there and if the price is low the quantity demanded is going to increase.

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

We need to know where it will strike next.

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

I should say how price relates to quantity demanded, and how quantity demanded relates to price.

Now let's think about how the demand for each of these goods might change depending on changes in income.

Something in the countryside.

It's a place of much significance.

It can actually exacerbate global warming problems.

So population goes up.

And their sales channel were going to be websites or stadium shops or ticket websites or direct mail.