Chapter Three: Demand, Supply and Market Equilibrium

Chapter Three: Demand, Supply and Market Equilibrium

3.1 A Demand Curve is Nothing but a Schedule (06:18)
This clip introduces the concept of demand curve or schedule, demonstrating how it can be constructed and interpreted.
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3.2 Change in Quantity Demanded vs. Change in Demand (03:56)
This clip explains why the demand curve is downward sloping, and makes distinction between a change in quantity demanded due to a change in the price of the good itself, and a shift in the demand schedule due to a change in such variables as income and prices of substitutes and complements.
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3.3 Demand Shifters (08:33)
This clip examines variables that can cause a shift in the demand schedule and explains the way in which the shift would take place.
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3.3a Normal Goods vs. Inferior Goods (03:27)
This clip expands on clip 3.3 and explains how a change in consumer income would shift a demand curve, depending on whether the good in question is a "normal good" or an "inferior good."
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3.3b Substitutes vs. Complements (05:35)
This clip expands on clip 3.3 and explains how a change in the price of an alternative good would shift a demand curve, depending on whether the two goods in questions are "substitutes" or "complements."
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3.4 A Supply Curve is Nothing but a Schedule (04:19)
This clip introduces the concept of supply curve or schedule, demonstrating how it can be constructed and interpreted.
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3.5 Change in Quantity Supplied vs. Change in Supply (03:49)
This clip explains why the supply curve is upward sloping, and makes distinction between a change in quantity supplied due to a change in the price of the good itself, and a shift in the supply schedule due to a changes in such variables as technology, weather, and prices of alternative products.
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3.6 Supply Shifters (05:26)
This clip examines variables that can cause a shift in the supply schedule and explains the way in which the shift would take place.
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3.7 Equilibrium, Shortage and Surplus (07:02)
This clip introduces the concept of market equilibrium, explains how it can be identified, and discusses the process by which market adjusts toward equilibrium.
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3.8 Rationing Function of Prices (1:57)
This clip explains how consumers and producers in a market economy use prices as signals for deciding how to allocate scarce resources to the production/consumption of alternative goods and services.
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3.9 Effect on Equilibrium of a Shift in Demand or in Supply (04:34)
This clip explains how equilibrium price and quantity can be affected by a change in the demand schedule alone or a change in the supply schedule alone.
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3.10 Effect on Equilibrium of Concurrent Shifts in Demand and Supply (07:19)
This clip explains how equilibrium price and quantity can be affected by a concurrent change in the demand and supply schedules.
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3.11 Price Ceiling and Its Effects (04:53)
This clip introduces the concept of price ceiling and explains how a price ceiling may affect equilibrium price and quantity.
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3.12 Price Floor and Its Effects (05:41)
This clip introduces the concept of price floor and explains how a price floor may affect equilibrium price and quantity.
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