@nomishel100 Thanks! For what it is worth, I am married :) I think I even mention it in my "movers and shifters" video as a reason that my demand curve for beer shifted. I'm happy to help.
@SalsaTiger83 It depends on how may points you plot on the graph. Please have a look at my video response at watch?v=2EsxE3uo3Kw. There I have shown straight lines because I have used 2 points for the value of Price and Quantity. If you plot statistical data of Price and Demand, you would note that there is a curve ...
@InnovCruz I'm flattered that you took the time to work the example using an alternative solution method. Thanks!
Regarding the use of statistical data to motivate calling a "curve," it might still be that the systematic relationship between P and Q is *approximately* linear with what looks like noise around a line. There are a variety of ways to estimate demand using different functional forms (most nonlinear). But, linearity is the simplest way to get the concepts straight.
@intromediateecon I am glad that you liked my alternative solution. I have yet to learn a lot of things from your videos (as I had mentioned that I am currently studyng). I did realise after posting my comments w.r.t. straight line and curves while I was in the bus yesterday :).
@intromediateecon This is what I feel is probably the right statement w.r.t. Straight line vs Curve - The graph from the equation will always be a straight line because there is a fixed relationship between the variable P and Q which is depicted by the equations of supply and demand. If P = 2Q, then no matter what the value of P, Q would always be half of P.
@intromediateecon When I said that you can see a curve with statistical data, I was expecting the curve due to the laws of dimnising (pls correct me on this :)) .... Price 0 is not really realistic value, it would probably come close to 0, but would never be 0. There should be a parabola in my opinion actually ... Too high price -> demand would be low. Too low price -> again the demand would be low. Optimal price -> demand would be at peak.
@InnovCruz Price = 0 is not realistic because people would demand too much (not too little as you suggest). Demand slopes downward. It need not be a straight line (a curvy downward-sloping line if you will), but it is simplest to draw as a straight line. The algebra is simplest that way, anyway.
great video, i've been trying to figure out the inverse function and couldn't understand the relationship between this and algebra. Your a great teacher..... thankyou :)
@labirrra I'm not going to do your homework for you. You should (with simple algebra) be able to convert the equations you gave me into something that looks like what I used in the video. Then, just follow the method I outlined in this video.
Believe me. I'm trying to figure it out, but I can't! With your video I was able to get it from Q=........ but I need to understand how to get it from P=....... you don't have to use my numbers, (the answers is 6 anyways) I need the step by step on how to solve it, if you can't help me that's ok.
For each equation, solve for Q instead of P. In both cases, you can accomplish this by multiplying by 5 (that's the same as dividing by 0.2). Then, just solve for Q.
Once in this form, following the video does the trick.
You could also set equilibrium prices equal, and solve for Q.... (in equilibrium, prices are equal, so are quantities).
Q. In the demand curve equation where did you get the 150 and what does it represent and where did you get the 2P and what does it represent. I want to know so that I an apply this in a real world setting. Thanks.
In the real world, economists estimate these relationships with data: we don't assume linearity.
Then, why did I assume that it is linear with some intercept (150) and some slope (2)? I did it because it is easy, and we learn something from the simpler model about the real world.
Analyzing these "toy" situations can help learn about the real world interactions between supply and demand. That's why you should watch the rest of the videos, and study economics.
This is a hard concept to master....
danielrafique 2 months ago
WHY CANT MY PROF TEACH LIKE THIS...... -.-
smackthatpop 5 months ago
good stuff man, prefer your digital versions though! maybe an update would be good? in any case cheers, massive help!
sebielewis 6 months ago
GJ
strangemyth 8 months ago
Thanks for lecture dude !
shahzadkhan007 10 months ago
you are not lecturer material, sorry
kiwiguy3suited 10 months ago
thank you for the lecture dude !
Mapmumo 11 months ago
Great videos. I like how you keep it simple.
mgunar 1 year ago
I really dig your knowledge and appreciate your help. I find it a bit sexy and if I werent married would ask you if you were.
nomishel100 1 year ago
@nomishel100 Thanks! For what it is worth, I am married :) I think I even mention it in my "movers and shifters" video as a reason that my demand curve for beer shifted. I'm happy to help.
intromediateecon 1 year ago 5
@nomishel100 I'm single, in case you were wondering :)
EyeAmTheIlluminati 1 year ago
P*=$4
Q*=30
correct?
BioPerplexodus 1 year ago
Why is the demand curve linear? I mean, it is convenient, but I can't reason it otherwise.
SalsaTiger83 1 year ago
@SalsaTiger83 sorry, you answered the question before in one of the comments....
SalsaTiger83 1 year ago
@SalsaTiger83 It's a great question, anyway. I'm glad you're not thinking about the math mechanically.
intromediateecon 1 year ago
@SalsaTiger83 It depends on how may points you plot on the graph. Please have a look at my video response at watch?v=2EsxE3uo3Kw. There I have shown straight lines because I have used 2 points for the value of Price and Quantity. If you plot statistical data of Price and Demand, you would note that there is a curve ...
InnovCruz 1 year ago
@InnovCruz I'm flattered that you took the time to work the example using an alternative solution method. Thanks!
Regarding the use of statistical data to motivate calling a "curve," it might still be that the systematic relationship between P and Q is *approximately* linear with what looks like noise around a line. There are a variety of ways to estimate demand using different functional forms (most nonlinear). But, linearity is the simplest way to get the concepts straight.
intromediateecon 1 year ago
@intromediateecon I am glad that you liked my alternative solution. I have yet to learn a lot of things from your videos (as I had mentioned that I am currently studyng). I did realise after posting my comments w.r.t. straight line and curves while I was in the bus yesterday :).
InnovCruz 1 year ago
@intromediateecon This is what I feel is probably the right statement w.r.t. Straight line vs Curve - The graph from the equation will always be a straight line because there is a fixed relationship between the variable P and Q which is depicted by the equations of supply and demand. If P = 2Q, then no matter what the value of P, Q would always be half of P.
InnovCruz 1 year ago
@intromediateecon When I said that you can see a curve with statistical data, I was expecting the curve due to the laws of dimnising (pls correct me on this :)) .... Price 0 is not really realistic value, it would probably come close to 0, but would never be 0. There should be a parabola in my opinion actually ... Too high price -> demand would be low. Too low price -> again the demand would be low. Optimal price -> demand would be at peak.
InnovCruz 1 year ago
@InnovCruz Price = 0 is not realistic because people would demand too much (not too little as you suggest). Demand slopes downward. It need not be a straight line (a curvy downward-sloping line if you will), but it is simplest to draw as a straight line. The algebra is simplest that way, anyway.
intromediateecon 1 year ago
I seriously learn more from you then any other teacher amazing videos (Y)
akripper 1 year ago
Bro. You taught that better than my University. Thanks!
thok58 1 year ago
great video, i've been trying to figure out the inverse function and couldn't understand the relationship between this and algebra. Your a great teacher..... thankyou :)
emgirl21 1 year ago
Yes!!!! thankyou mate!! Ive been in my library at uni all day trying to get my head round this, watch the video and boom i understand!!
liamopotter 1 year ago
I need to know how to get the price and quantity by only having this kind of equation: P= 10- 0.2Q
P= 2+ 0.2Q
thanks
labirrra 2 years ago 2
@labirrra I'm not going to do your homework for you. You should (with simple algebra) be able to convert the equations you gave me into something that looks like what I used in the video. Then, just follow the method I outlined in this video.
intromediateecon 2 years ago
Believe me. I'm trying to figure it out, but I can't! With your video I was able to get it from Q=........ but I need to understand how to get it from P=....... you don't have to use my numbers, (the answers is 6 anyways) I need the step by step on how to solve it, if you can't help me that's ok.
labirrra 2 years ago
For each equation, solve for Q instead of P. In both cases, you can accomplish this by multiplying by 5 (that's the same as dividing by 0.2). Then, just solve for Q.
Once in this form, following the video does the trick.
You could also set equilibrium prices equal, and solve for Q.... (in equilibrium, prices are equal, so are quantities).
I hope that helps.
intromediateecon 2 years ago
@labirrra Exactly
Geo2r 1 year ago
Q. In the demand curve equation where did you get the 150 and what does it represent and where did you get the 2P and what does it represent. I want to know so that I an apply this in a real world setting. Thanks.
musicplayboy77 2 years ago
@musicplayboy77 Good question.
In the real world, economists estimate these relationships with data: we don't assume linearity.
Then, why did I assume that it is linear with some intercept (150) and some slope (2)? I did it because it is easy, and we learn something from the simpler model about the real world.
Analyzing these "toy" situations can help learn about the real world interactions between supply and demand. That's why you should watch the rest of the videos, and study economics.
intromediateecon 2 years ago
great video tnx man
freecolyn 2 years ago
That's sweet. Simple as shit. But sweet.
mediblue9 2 years ago
Great vid, thanks
Warrantofficer13 2 years ago