The logical contradictions have been exposed in Alex Gheg's video. Just ask 2 simple questions. What is quality? What is convenience? One equation can explain it all. youtube.com/watch?v=2c4mvGekYZY
@Rehan1994 As Milton Friedman once said, "There is no such thing as a free lunch." These videos are posted by me and I am not funded by any government, educational institution. While I love to help students, I have to get some compensation somehow, right?
@economicsfun If you say so man. :/ I watch music videos and all of the have ads. I decide to revise for my test tomorrow and I see a ad it just made me rage.
@Rehan1994 It is all good! Hopefully you can skip the ads. I know that economics can be frustrating and hope that my vids help you revise and pass...so you can party more and study less!
If you have any topics that make you want to go into a spontenous zombie like rage...let me know and I can post something.
If you need to make serious money (more then what you make through the ads) hit me up with a PM any time. I will introduce a new world of money making. WHY? I am feeling generous.
In the diagram- you have to assume ceteris paribus that demand is constant because as long as it is inside the blue area, people still want and are able to buy it.
Not assuming ceteris paribus, if you do want to assume the demand changes, just redraw the diagram with a demand shift curve, and you will see that because of the increase of prices due to the company's change in supply, their profits decrease due to lower demand. ;)
@ameliabernard92 I try not to use too many fancy latin words like "ceteris paribus" which means roughly all other things being equal. I try to keep it as simple as possible.
Mukerjeewise- The equilibrium price is what consumers are currently paying for the good or service, and the blue section marks what they are willing to pay but don't (so it's beneficial to them- that's why its called a consumers surplus). For example, a PS3 may cost $500, but you would have been willing to pay $800 for it. Therefore, Sony would increase their supply. When the supply increases, the profits Sony gains also increases and our consumers surplus is reduced. Got it? :)
@ameliabernard92 thank you so much for your comment however I had a doubt. if the supply increases the equilibrium price goes higher up......then the people who previously bought the ps3 at the equlibruim price cannot purchase it now at a higer equil. price. Will it not reduce the quantity demanded and hence the total revenue? or is it compensated for by the increase in price?
dont get the part where the supply shifts to S1....does it really shift? It can't because if the suppliers increase their supply their prices increase right, so the people who then were able to pay the equilibrium price cannot pay the current price!!
@mukerjeewise Good observation. Yes prices are higher, BUT there are consumers willing to pay that price instead of a lower price in the future. This is the idea behind consumer surplus. Some consumers are willing to pay a higher price but get it at the lower market price (or equilibrium price).
Supply "shifts" because supply is being constricted (artificially in my example). In this case it is not market supply but individual supply curve -- more or less.
Clinton didn't leave a surplus but a $1.4 trillion debt over eight years. He borrowed from Social Security, part of a $115 Trillion unfunded liability, to make it seem he left a surplus. See my about me for links.
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The logical contradictions have been exposed in Alex Gheg's video. Just ask 2 simple questions. What is quality? What is convenience? One equation can explain it all. youtube.com/watch?v=2c4mvGekYZY
IlirMr 6 days ago
wow, thank you! it's much easier with an example :D
Linn3aJ 1 week ago
Why is there a fucking ad on a educational video.
Rehan1994 3 months ago
@Rehan1994 As Milton Friedman once said, "There is no such thing as a free lunch." These videos are posted by me and I am not funded by any government, educational institution. While I love to help students, I have to get some compensation somehow, right?
economicsfun 3 months ago
@economicsfun If you say so man. :/ I watch music videos and all of the have ads. I decide to revise for my test tomorrow and I see a ad it just made me rage.
Sorry :)
Rehan1994 3 months ago
@Rehan1994 It is all good! Hopefully you can skip the ads. I know that economics can be frustrating and hope that my vids help you revise and pass...so you can party more and study less!
If you have any topics that make you want to go into a spontenous zombie like rage...let me know and I can post something.
economicsfun 3 months ago
@economicsfun Aha its all good teacher :)
If you need to make serious money (more then what you make through the ads) hit me up with a PM any time. I will introduce a new world of money making. WHY? I am feeling generous.
Rehan1994 3 months ago
@Rehan1994 you are a clueless person!
RockBRolly 2 months ago
@RockBRolly ¬_¬ NO I am a college student!
Rehan1994 2 months ago
In the diagram- you have to assume ceteris paribus that demand is constant because as long as it is inside the blue area, people still want and are able to buy it.
Not assuming ceteris paribus, if you do want to assume the demand changes, just redraw the diagram with a demand shift curve, and you will see that because of the increase of prices due to the company's change in supply, their profits decrease due to lower demand. ;)
ameliabernard92 6 months ago
@ameliabernard92 I try not to use too many fancy latin words like "ceteris paribus" which means roughly all other things being equal. I try to keep it as simple as possible.
economicsfun 6 months ago
Mukerjeewise- The equilibrium price is what consumers are currently paying for the good or service, and the blue section marks what they are willing to pay but don't (so it's beneficial to them- that's why its called a consumers surplus). For example, a PS3 may cost $500, but you would have been willing to pay $800 for it. Therefore, Sony would increase their supply. When the supply increases, the profits Sony gains also increases and our consumers surplus is reduced. Got it? :)
ameliabernard92 6 months ago
@ameliabernard92 thank you so much for your comment however I had a doubt. if the supply increases the equilibrium price goes higher up......then the people who previously bought the ps3 at the equlibruim price cannot purchase it now at a higer equil. price. Will it not reduce the quantity demanded and hence the total revenue? or is it compensated for by the increase in price?
mukerjeewise 6 months ago
dont get the part where the supply shifts to S1....does it really shift? It can't because if the suppliers increase their supply their prices increase right, so the people who then were able to pay the equilibrium price cannot pay the current price!!
mukerjeewise 6 months ago
@mukerjeewise Good observation. Yes prices are higher, BUT there are consumers willing to pay that price instead of a lower price in the future. This is the idea behind consumer surplus. Some consumers are willing to pay a higher price but get it at the lower market price (or equilibrium price).
Supply "shifts" because supply is being constricted (artificially in my example). In this case it is not market supply but individual supply curve -- more or less.
economicsfun 6 months ago
@economicsfun aah alright thanks..:)
mukerjeewise 6 months ago
@mukerjeewise I replied to you via comment! Hope it helps... xoxo
ameliabernard92 6 months ago
Clinton didn't leave a surplus but a $1.4 trillion debt over eight years. He borrowed from Social Security, part of a $115 Trillion unfunded liability, to make it seem he left a surplus. See my about me for links.
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Allen West 2012
TheModelification 1 year ago
no voice
sidrabaig20 1 year ago
Now I get it ...THXXXXXXXXXXXXXXXXXXX
Ahmedkhurramanwarkha 1 year ago
Check out my facebook group "econsucks" and twitter econsucks.
economicsfun 2 years ago
ty, lol last min Xam study
Jonom1993 2 years ago
Thank You very much!!
It is very useful!!
sarabalila 2 years ago