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

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

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

And my argument there is that's normally the case.

Let me write that in green.

Scenario E, I raise it to 10.

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

So, income goes up, then that increases demand.

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

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

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

So income goes down, demand goes up.

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

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

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

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.

So, and likewise, if income were to go down for a normal good, it'll do what you'll expect, demand would go down.

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

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

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

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

And then more people buy.

So this right over here.

I understand the concept of supply and demand.

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

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

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

This column let me put my price.

So if I were to draw the demand curve, it could look something like this.

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

But it was obvious to me, right? Buy low, sell high.

And we can use it to launch nanosatellites into orbit.

Here is the demand forecast for 1998.

Imported cars are in strong demand.

All the movements stopped at falsifying.

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

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

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

That's a demand driver.

If it's a little confusing to you right now, hopefully by the end of this video the difference between demand and quantity demanded will become a little bit clearer, and definitely over the next few videos.

Supply is relative to demand.

The price reflects the demand.