All the Market Forces Fluctuating

 
 

The video starts covering shifts in supply and demand from the consumers perspective, along with elasticity and weighing costs and benefits in the first verse.  The chorus poses the question "Why you always changing?" to the market, and uses some of the fundamentals of microeconomics to respond. Concepts in the second verse range from the cost, supply, demand for labor, to luxuries and necessities. The third verse finishes with some fundamentals of microeconomics such as rationality, subjective costs and benefits, secondary effects, and holding all else constant.

 

TOPICS

  • Demand

  • Supply

  • Costs

  • Necessities

  • Luxuries

  • Hold all else constant

  • Shifts vs movement along

  • benefits

  • rationality

  • markets

  • elasticity

  • taste and preferences

  • taxes and subsidies

  • incentives

  • trade creates value

  • invisible hand

  • unintended consequences. 

Questions

  1. Explain the difference between a shift in demand and a movement along the demand curve?

  2. Why would spending on luxuries drop when income falls? Use the income elasticity equation to explain your answer.

  3. Using the supply and demand framework, show how taxes and subsidies impact the market 

Related