Supply and Demand Solving for Equilibrium for Economics

[corbs2011]

how come you graphed the supply curve y-intercept at four when it is -4? is the -4 just used for finding Q* at the equilibrium price?

[economicsfun]

@corbs2011 Good question, but I think you are thinking about what happens when the supply curve crosses the x axis. When p = 0, the supply curve would cross the quantity axis (x) at -4. The y intercept is determined when Quantity = 0. When Quantity = 0, then price is 4.

Make sense?

[queenrgb1]

Thank you I really understood your explanation. Very helpful.

[economicsfun]

@queenrgb1 Appreciate the positive feedback. Do let me know how you do on your exams and the class. Also, if there are other topics you need help with please let me know. I am always looking for new ideas for videos to help students.

[economicsfun]

@queenrgb1 Appreciate the positive feedback. Do let me know how you do on your exams and the class. Also, if there are other topics you need help with please let me know. I am always looking for new ideas for videos to help students.

[economicsfun]

@queenrgb1Appreciate the positive feedback. Do let me know how you do on your exams and the class. Also, if there are other topics you need help with please let me know. I am always looking for new ideas for videos to help students.

[economicsfun]

@queenrgb1 Appreciate the positive feedback. Do let me know how you do on your exams and the class. Also, if there are other topics you need help with please let me know. I am always looking for new ideas for videos to help students.

[kazooie14]

Does it matter how you draw the demand and supply lines, in terms of spacing??? For example, could it have been drawn perfectly, like an X, in the middle? (Sorry if you answered this my iPhone is being stupid and won't load the video after 0.56)

[economicsfun]

@kazooie14 Yes you could just draw an X as supply and demand and that would be fine. The way the most demand and supply curves are drawn in a text book look nothing like they would in the real world. One thing is for sure is both the supply curve and demand curves are not straight lines (or linear). Instead they are curved lines.

[kazooie14]

@economicsfun

Thank You!

[kumiko1115]

dude...why is -4+1p intercepting at +4 on the y axis...

[economicsfun]

@kumiko1115 holy schnikes that is good question dude! Keep in mind p is the price. When price is zero that is where the supply line (red) crosses the x axis. If you go back to 1:08 in the video you will see where the supply line crosses the x axis. It is probably confusing because the supply line crosses the y axis at +4. This is where quantity is equal to zero. Make sense?

Thanks for the question.

[whattevermajorloser]

cool! this video totally made me understand !