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

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

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

So in that case, even though the money supply is huge, or a lot larger than it was, people aren't expressing demand.

So, income goes up, then that increases demand.

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

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

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

So income goes down, demand goes up.

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.

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

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

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.

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

This guy needs less cash, so it lowers demand.

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

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

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

They decide to sell their house.

The price reflects the demand.

The lust denies the need.

And then the last one we'll talk about

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

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

It puts pressure on water demand.

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

Generate color schemes

Ideally, instead of writing filter of lambda n and mod 2 equals equal one.

Let me write that in green.

Scenario E, I raise it to 10.

So this is actually changing our demand, it's changing our whole relationship.

And then more people buy.

So this right over here.

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

Here is the demand forecast for 1998.

Two problems. That will not be a market price.

And we can use it to launch nanosatellites into orbit.

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

So I get to 8 now.

Supply is relative to demand.

But this is just our capacity, our productive capacity.

Generates a solid color

This puts pressure on food demand.