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

Supplies cannot keep up with the demand.

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

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

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

Let me write that in green.

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

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

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

Imported cars are in strong demand.

They decide to sell their house.

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

Scenario E, I raise it to 10.

These goods are in great demand.

There is a great demand for gasoline.

This is what we call the DEMAND SCHEDULE.

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.

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

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

So let's just think about their hypothetical demand curves right now

Here is the demand forecast for 1998.

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

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

The supply demand balance is tight.

WRlTING Demand goes up.

There is more people that have money in their pockets.

So it's shifting demand to the right.

There is a great market for rice in Japan.

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

So income goes down, demand goes up.

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

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

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.

And so, it would increase the demand.

And yet what we proved then is the U.S. has more market power than OPEC.

There is a big market for coffee.

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

So population goes up.

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