Economics explained, supply and demand outcomes

[ilatibbles]

thanks for the valuable information

[waterproofcat1]

Speech would be helpful.

[spongebob2093]

And yes, I had to answer questions on this for homework! I was in agony

[Amiduffer]

Its a shame that so many generations of young people have to be tortured with this.

[ThegoodEconomist]

If by tortured you mean to say a functional system of prices with predictable outcomes then, yes, they are in agony.

[Amiduffer]

No. Forced to study formulas that have nothing to do with reality.

[ThegoodEconomist]

Well, fair is fair. I'll let you be the judge, after all, science is a method of hypothesis and observation of tests for said hypothesis. So, go out into the real world and find as many cases as possible where either supply or demand is primary changing and the other is primarily remaining constant. Test the age old supply and demand model

[ThegoodEconomist]

Please note; demand = real income of buyers, preferences of buyers, prices of substitutes and so on. Supply = the cost of labor, cost of capital inputs (i.e. machine needed to for production) taxes on production and so on

[spongebob2093]

Are these the actual definitions?

[ThegoodEconomist]

Yes, the ones that I listed in the response above are, however, the ones in the video are very loose. In general demand is the prices associated with a amount purchased at that price. So whatever will effect that must be counted as a factor. Vise versa for supply, whatever will effect the ability and willingness to produce must be counted under supply