2,457 views in three days. About the same number of views an NBA slam dunk, lady gaga or snoop dogg vids would get in 5 minutes. We, as a generation, are doomed!
Both purchases, assuming they are in well working order, they won't move predicably in one direction. They will actually in reality have a "bell effect" if you will. There is an expected price point for most products/good, and as a product moves away from that expected price, people become cautious of the "too good to be true" mentality and sales will fall.
For instance, would you buy a $100 laptop or a $500 car? Yeah right. What's wrong with it? lol.
@asdfgoogle With all due respect, he implied what you said. He said that the Yugo was an example of an "inferior good", which means that people would purchase it only if they could not afford something better: a "normal good".
So, people would question, "A $500 car? Yeah right. What's wrong with it?" but would still buy it if they couldn't afford better. However, if their income went up, per Khan's example, then more people could buy better cars, decreasing the demand/price for Yugos.
@ZacharySmith89 Actually the reality is that most people would NOT buy a $500 car, because 90% of the time, a $500 car is has serious mechanical or some other problems.
For instance, I sold one of my cars a year ago to a mechanic for $450, because the engine required more work that what it was worth to someone who couldn't fix it himself. The only other offers I got were just a few hundred $ from people that were just going to part it out or take it to the junk yard.
@asdfgoogle Just like your experience, where I live $500 cars have serious problems 90% of the time (like mine!). Because they tend to have serious problems, they are considered an "inferior good". Because they are an inferior good (with serious problems), most people would NOT buy them. We agree on this.
I'm not entirely certain why you replied in argumentative tone, because we seem to agree...um, your insistence on a "bell effect", I think, means that you have defined different parameters...
@asdfgoogle Okay, so I have imagined your bell shape. It was annoying because it was sideways, on the y-axis--I agree with Sal that the x-axis should have been price!--I also understood the cause of your bell shape (it would definitely be skewed right--er, up--usually?). So, I now understand where we differ: I see this video as working on the assumption of the absence of price perception for the sake of simplicity/clarity to focus on the affect of income on the demand/price for inferior goods.
@asdfgoogle But I agree that this--or the last video, in which he discussed variables assumed to be held constant--would have been a good time to introduce the concept of price perception and other irrationalities. Who knows, maybe Sal's the type of libertarian who believes in a completely rational market with perfect information, where everyone has the time to research that $500 car to ascertain its true value, without any doubt of misinformation. XD. Or maybe he'll cover it in the next vid...
This is a long meandering bullshit diatribe about an imaginary system called money. Money is utterly irrelevant, the monetary system has absolutely no bearing on reality, aside from that which delusional people (like the author of this video) ascribe to it. Price is a meaningless number arbitrarily determined to control the money supply and thus to control resources. But it's all voodoo, it only works on you if you believe in it. The term "price point" is as pointless as this stupid fucking vid.
@fertilizerspike I do support what you say to some point, but we do live in a fucked up society where money is almost everything. To beat the system, you will need to know it inside out. So instead of cursing the author of this video, you must thank him for sharing his knowledge for free.
The effect partly explains why some poor countries never take off: if they manufacture inferior goods, it's because there's a market for them; when their economies grow a little and incomes get better, people stop buying local products, which brings small manufacturers down, and so the cycle goes on.
@sephizinho that's is what I was thinking but I think you have to say that the laptop is already a really good laptop where as the car is the worst on the market, I guess you have to be a bit general about everything
@sephizinho absolutely. he got this wrong. well at least the example is wrong. people will buy more of that laptop if before they didn't got the money for it but now they have the amount ONLY for that laptop. The same as the car. So every product in inferior at some given point for a customer depending of the amount of money he has. So this example is not correct.
So would an automobile that is opposite that of the [Inferior] Ugo, like say a [superior] Pagani Huayra, be considered as a normal good when it's demand is graphed?
@KillerWhaleSFl but then what would define a normal good? goods would be produced by monopolies because there'd be no need to create another good JUST like it. That'd be a pretty dysfunctional society, dont you think?
@RbtV92 if humans lived up to their potential and created an egalitarian society free of the profit motive there would be NO NEED for inferior products. We would utilize our technology to mass produce the highest quality products possible, for everyone.
Instead we have environmental destruction, manufactured obsolescence, externalized cost, a whole industry dedicated to making cheap crap that shouldn't exist in the first place.
Profit system is not a bad system like you say it.
Consumers do decide what they want, a company would end up losing if it ignores it's consumers wishes.
What makes most of the current profit system more destructive, is the fact that the state exists, which sets to regulate and protect them, plus they can buy support from the state. Hope I made some sense.
@goldensilverstar so you're thinking there will be more demand for shitty teachers if schools get more money? No, you're thinking that if schools don't have enough money demand for khan would go up. Either way, nice try but I don't think it works.
@goldensilverstar "Fuck you*, your* mom* is cheap in bed." Also, did you mean, "Your mom is cheap to get into bed," like a cheap hooker, or did you mean, "your mom is cheap when buying objects while she is in bed?"
I have never heard that cars are an inferior good. Why not take cereals as inferior goods? Higher income would make people eat out in restaurants more, causing the demand for cereals to decrease.
@giaquoc1980 Try not to think "cars" as being an inferior product, but think that "a car like the one on the example" as Khan says "Cheapest car" 3:10. In that case, it is an inferior good, in comparison with better ones, thus the behavior in demand.
Is a computer a good example of a normal good though? I am only asking because I would assume a higher income would beg for a better computer that can do more things. Compare that to a piece of quality furniture which is more "stable" in this regard....?? Forgive my ignorance if this is totally wrong!
thank 4 this
joephrone 2 months ago
why do I even go to highschool? I could just sit at home watching these videos for 8 hours a day and then go and get a GED
skatedude74 2 months ago
2,457 views in three days. About the same number of views an NBA slam dunk, lady gaga or snoop dogg vids would get in 5 minutes. We, as a generation, are doomed!
superduc99 2 months ago 8
@superduc99 Just make sure to share these videos with everyone that you know. There is hope.
drahkik 2 months ago
Both purchases, assuming they are in well working order, they won't move predicably in one direction. They will actually in reality have a "bell effect" if you will. There is an expected price point for most products/good, and as a product moves away from that expected price, people become cautious of the "too good to be true" mentality and sales will fall.
For instance, would you buy a $100 laptop or a $500 car? Yeah right. What's wrong with it? lol.
Just something you should have mentioned.
asdfgoogle 2 months ago
@asdfgoogle With all due respect, he implied what you said. He said that the Yugo was an example of an "inferior good", which means that people would purchase it only if they could not afford something better: a "normal good".
So, people would question, "A $500 car? Yeah right. What's wrong with it?" but would still buy it if they couldn't afford better. However, if their income went up, per Khan's example, then more people could buy better cars, decreasing the demand/price for Yugos.
ZacharySmith89 2 months ago in playlist Microeconomics
@ZacharySmith89 Actually the reality is that most people would NOT buy a $500 car, because 90% of the time, a $500 car is has serious mechanical or some other problems.
For instance, I sold one of my cars a year ago to a mechanic for $450, because the engine required more work that what it was worth to someone who couldn't fix it himself. The only other offers I got were just a few hundred $ from people that were just going to part it out or take it to the junk yard.
asdfgoogle 2 months ago
@asdfgoogle Just like your experience, where I live $500 cars have serious problems 90% of the time (like mine!). Because they tend to have serious problems, they are considered an "inferior good". Because they are an inferior good (with serious problems), most people would NOT buy them. We agree on this.
I'm not entirely certain why you replied in argumentative tone, because we seem to agree...um, your insistence on a "bell effect", I think, means that you have defined different parameters...
ZacharySmith89 2 months ago
@asdfgoogle Okay, so I have imagined your bell shape. It was annoying because it was sideways, on the y-axis--I agree with Sal that the x-axis should have been price!--I also understood the cause of your bell shape (it would definitely be skewed right--er, up--usually?). So, I now understand where we differ: I see this video as working on the assumption of the absence of price perception for the sake of simplicity/clarity to focus on the affect of income on the demand/price for inferior goods.
ZacharySmith89 2 months ago
@asdfgoogle But I agree that this--or the last video, in which he discussed variables assumed to be held constant--would have been a good time to introduce the concept of price perception and other irrationalities. Who knows, maybe Sal's the type of libertarian who believes in a completely rational market with perfect information, where everyone has the time to research that $500 car to ascertain its true value, without any doubt of misinformation. XD. Or maybe he'll cover it in the next vid...
ZacharySmith89 2 months ago
This has been flagged as spam show
Happy New Year!
plamenxyzpenchev 2 months ago
This has been flagged as spam show
This is a long meandering bullshit diatribe about an imaginary system called money. Money is utterly irrelevant, the monetary system has absolutely no bearing on reality, aside from that which delusional people (like the author of this video) ascribe to it. Price is a meaningless number arbitrarily determined to control the money supply and thus to control resources. But it's all voodoo, it only works on you if you believe in it. The term "price point" is as pointless as this stupid fucking vid.
fertilizerspike 2 months ago
@fertilizerspike Your first sentence should have ended with a colon instead of a period. lolz.
XxJeffSimmonsxX 2 months ago
@fertilizerspike I do support what you say to some point, but we do live in a fucked up society where money is almost everything. To beat the system, you will need to know it inside out. So instead of cursing the author of this video, you must thank him for sharing his knowledge for free.
iaregeekX 2 months ago
@kamikazerus - how come Jewish?
Humiinabox 2 months ago
Thumbs up if you misread the title as "Normal and Inferior Gods".
dubbleplusgood 2 months ago
Actually studied this in my Economics class in College
leksideodutayo 2 months ago
A Russian joke:
Q: How do you double the price of a Yugo?
A: Fill up the tank.
DoctorPlausible 2 months ago
@DoctorPlausible More like jewish joke
kamikazerus 2 months ago
The effect partly explains why some poor countries never take off: if they manufacture inferior goods, it's because there's a market for them; when their economies grow a little and incomes get better, people stop buying local products, which brings small manufacturers down, and so the cycle goes on.
DoctorPlausible 2 months ago
Planned Obsolescence: Making inferior goods for the sake of creating profits. Look up and watch the Lightbulb Conspiracy.
S0up3rD0up3r 2 months ago
I understand the logic, but you could say that you could get a better laptop aswell no?
sephizinho 2 months ago in playlist Microeconomics
@sephizinho that's is what I was thinking but I think you have to say that the laptop is already a really good laptop where as the car is the worst on the market, I guess you have to be a bit general about everything
Sen1Sky 2 months ago
@sephizinho absolutely. he got this wrong. well at least the example is wrong. people will buy more of that laptop if before they didn't got the money for it but now they have the amount ONLY for that laptop. The same as the car. So every product in inferior at some given point for a customer depending of the amount of money he has. So this example is not correct.
artemeeb 2 months ago
A buyer comes comes to car dealership and asks the seller to show him the new model of Yugo.
- Here you go, this is the latest Yugo model.
Buyer:
- Does it have air conditioning?
Seller:
- Yes, it has air conditioning, abs, power steering, seat heater and a button to open wings with which Yugo flies at higher speeds.
Buyer:
- You f***ing with me?
Seller:
- You started.
rockYhre 2 months ago 3
what's about pharmaceuticals
Da0YiN 2 months ago in playlist Microeconomics
inflatin anyone
ollobrains1 2 months ago
So would an automobile that is opposite that of the [Inferior] Ugo, like say a [superior] Pagani Huayra, be considered as a normal good when it's demand is graphed?
KoolAidAnd 2 months ago
@KoolAidAnd As I understood Yes
riyadhelalami 2 months ago
is he a muslim? i'm going to be one today
MXMGamer 2 months ago
Wouldn't the graph on the right stay the same when income went up because the people who couldn't afford the cheapest can now afford it?
rnmoates 2 months ago
Is your first name shaad?
mydogsuger 2 months ago
When the curve shifts, does the curve ALWAYS stay EXACTLY the same?
dhape128 2 months ago
Q. Why do Yugos come with heated rear windows?
A. To keep your hands warm while you're pushing them.
LividImp 2 months ago 52
@LividImp I don't think people really understand that one :-)
cat2kill 2 months ago
@LividImp HAHAAHHAHA LOL!
tubeyou1901 2 months ago
seriously? do ppl study this? I thought it was just common sense?
qrais 2 months ago
@qrais a functional society would have no need for inferior goods. Thats the lesson I learned.
KillerWhaleSFl 2 months ago 2
@KillerWhaleSFl but then what would define a normal good? goods would be produced by monopolies because there'd be no need to create another good JUST like it. That'd be a pretty dysfunctional society, dont you think?
RbtV92 2 months ago in playlist Microeconomics
@RbtV92 if humans lived up to their potential and created an egalitarian society free of the profit motive there would be NO NEED for inferior products. We would utilize our technology to mass produce the highest quality products possible, for everyone.
Instead we have environmental destruction, manufactured obsolescence, externalized cost, a whole industry dedicated to making cheap crap that shouldn't exist in the first place.
why? profit > human well being/social progress
KillerWhaleSFl 2 months ago 8
@KillerWhaleSFl
Profit system is not a bad system like you say it.
Consumers do decide what they want, a company would end up losing if it ignores it's consumers wishes.
What makes most of the current profit system more destructive, is the fact that the state exists, which sets to regulate and protect them, plus they can buy support from the state. Hope I made some sense.
teawead 2 months ago
@KillerWhaleSFl thats a hell of a point. I didnt think you were looking at it from that perspective.
RbtV92 2 months ago
oh snap. i have that computer. didnt even realize it till near the end
animals0feel1pain2 2 months ago in playlist Microeconomics
Awesome job!!! i've always wanted to see more videos from the President of Education :-)
XxHamletJacobsXx2022 2 months ago
Haha, Yugo :-)
fortissimoX 2 months ago 3
Quantitity lol
wristkiss 2 months ago
An example of Inferiority: Khan Academy
An example of Normal: The shitty teachers at my school
goldensilverstar 2 months ago 27
@goldensilverstar But Khan Academy is not inferior, it's superior!
idiotrun1997 2 months ago
@goldensilverstar i wouldnt mind watching khan even if I sould afford university professors.
RbtV92 2 months ago in playlist Microeconomics
@RbtV92 could*
RbtV92 2 months ago in playlist Microeconomics
@goldensilverstar so you're thinking there will be more demand for shitty teachers if schools get more money? No, you're thinking that if schools don't have enough money demand for khan would go up. Either way, nice try but I don't think it works.
Wizkid717007 2 months ago in playlist Microeconomics
@Wizkid717007 u prick i wrote that comment as a joke, i am showing how good khan academy is
goldensilverstar 2 months ago
@goldensilverstar And lazy shit student like goldensilverstar who can't read a textbook.
iasedu 2 months ago
This has been flagged as spam show
@iasedu YOU CANT FUCKING READ UR ASS
goldensilverstar 2 months ago
@goldensilverstar Kahn Academy is actually superior. You, however, are inferior.
triclops20 2 months ago 4
This has been flagged as spam show
@triclops20 FUCK U, UR MUM IS CHEAP IN BED
goldensilverstar 2 months ago
This has been flagged as spam show
@goldensilverstar "Fuck you*, your* mom* is cheap in bed." Also, did you mean, "Your mom is cheap to get into bed," like a cheap hooker, or did you mean, "your mom is cheap when buying objects while she is in bed?"
triclops20 2 months ago
@triclops20 go fuck urself
goldensilverstar 2 months ago
You have improved my life. Thank-you Khan Academy
PercivalHoward 2 months ago
Idk how i managed to be a sub to this channel
Exodus1996 2 months ago
interesting!
Bojl95 2 months ago
jh
JKJUNIOR95 2 months ago
I have never heard that cars are an inferior good. Why not take cereals as inferior goods? Higher income would make people eat out in restaurants more, causing the demand for cereals to decrease.
giaquoc1980 2 months ago in playlist Microeconomics
@giaquoc1980 Try not to think "cars" as being an inferior product, but think that "a car like the one on the example" as Khan says "Cheapest car" 3:10. In that case, it is an inferior good, in comparison with better ones, thus the behavior in demand.
237Fonseca 2 months ago
@giaquoc1980 as Sal said* sorry, writing at 2 a.m.
237Fonseca 2 months ago
Outstanding!
cosmosgato 2 months ago
Is a computer a good example of a normal good though? I am only asking because I would assume a higher income would beg for a better computer that can do more things. Compare that to a piece of quality furniture which is more "stable" in this regard....?? Forgive my ignorance if this is totally wrong!
spinynorman1982 2 months ago in playlist Microeconomics
Thanks Khan for posting this :)
MrTigerman08 2 months ago
hgjfr
MiscXI 2 months ago