Total Video Time: 62 minutes
In a market economy, supply and demand determine the price in the market, and that determines how much of a product people are willing to buy and suppliers are willing to produce and sell. So for the next three modules, we will establish the underpinnings of this model. Here, we start with demand. Even if you have already taken another economics course, you should watch these videos. I present some of this material in a way that is different from what you may have learned already (particularly video 3.4).
Video 2.1: Demand (18 min)
Note: somehow the audio synch was not enabled so the audio runs a bit before the video as the video plays out. I apologize for any inconvenience this causes.
Video 2.2: Law of Demand (9 min)
This video explains why the demand curve slopes down. While it seems to just be a common sense understanding that when the price of a good falls, people tend to buy more of it, economists break that decision up into two different parts: income and substitution effects.
Video 2.3a: Changes in Demand, part 1 (13 min)
This video and the next cover the 5 main factors that will shift demand.
Video 2.3b: Changes in Demand, part 2 (8 min)
Video 2.4: Two Views of Demand (14 min)
This video explores two different views of demand (traditional vs. willingness-to-pay) and also elaborates a bit on the differences between a change in “quantity demanded” and a change in “demand.”