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Dialogue: 0,0:00:00.00,0:00:02.33,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:13.59,0:00:15.19,Default,,0000,0000,0000,,- [Narrator] Economists\Nuse similar terms
Dialogue: 0,0:00:15.19,0:00:17.41,Default,,0000,0000,0000,,for two things\Nwhich are quite different:
Dialogue: 0,0:00:17.41,0:00:22.37,Default,,0000,0000,0000,,a change in the quantity demanded\Nversus a change in demand.
Dialogue: 0,0:00:22.37,0:00:24.71,Default,,0000,0000,0000,,It can be a little confusing,\Nso let's review.
Dialogue: 0,0:00:25.24,0:00:27.04,Default,,0000,0000,0000,,A change in quantity demanded
Dialogue: 0,0:00:27.04,0:00:30.75,Default,,0000,0000,0000,,refers to a movement\Nalong a fixed demand curve --
Dialogue: 0,0:00:30.75,0:00:32.98,Default,,0000,0000,0000,,that's caused by a change in price.
Dialogue: 0,0:00:33.84,0:00:38.27,Default,,0000,0000,0000,,A change in demand refers\Nto a shift in the demand curve --
Dialogue: 0,0:00:38.27,0:00:40.81,Default,,0000,0000,0000,,that's caused\Nby one of the shifters:
Dialogue: 0,0:00:40.81,0:00:42.90,Default,,0000,0000,0000,,income, preferences,
Dialogue: 0,0:00:42.90,0:00:46.24,Default,,0000,0000,0000,,changes in the price\Nof related goods and so on.
Dialogue: 0,0:00:46.24,0:00:49.00,Default,,0000,0000,0000,,Let's illustrate the difference\Nwith a refreshing example.
Dialogue: 0,0:00:49.00,0:00:50.33,Default,,0000,0000,0000,,We'll use soda.
Dialogue: 0,0:00:51.28,0:00:53.00,Default,,0000,0000,0000,,- [Woman 1] Um, don't you mean pop?
Dialogue: 0,0:00:53.00,0:00:54.89,Default,,0000,0000,0000,,- [Man] That's a coke, y'all!
Dialogue: 0,0:00:54.89,0:00:58.34,Default,,0000,0000,0000,,- [Woman 2] Actually, soft drink\Nis the most accurate term, so...
Dialogue: 0,0:00:58.34,0:01:01.11,Default,,0000,0000,0000,,- [Narrator] Fine, we'll just use\Nsugary, fizzy drinks, okay?
Dialogue: 0,0:01:01.11,0:01:04.80,Default,,0000,0000,0000,,First, let's recall a change\Nin the quantity demanded.
Dialogue: 0,0:01:04.80,0:01:07.45,Default,,0000,0000,0000,,Suppose the price\Non sugary, fizzy drinks
Dialogue: 0,0:01:07.45,0:01:09.75,Default,,0000,0000,0000,,goes from $3 to $4.
Dialogue: 0,0:01:09.75,0:01:11.31,Default,,0000,0000,0000,,What happens?
Dialogue: 0,0:01:11.31,0:01:16.44,Default,,0000,0000,0000,,Well, the quantity demanded\Ndecreases from 200 to 150.
Dialogue: 0,0:01:16.44,0:01:19.13,Default,,0000,0000,0000,,There's a decrease\Nin the quantity demanded
Dialogue: 0,0:01:19.13,0:01:22.02,Default,,0000,0000,0000,,marked by movement\Nalong the demand curve.
Dialogue: 0,0:01:22.02,0:01:25.37,Default,,0000,0000,0000,,But there's no change\Nin the existing demand curve.
Dialogue: 0,0:01:26.14,0:01:28.72,Default,,0000,0000,0000,,Now, let's look at\Na change in the demand,
Dialogue: 0,0:01:28.72,0:01:30.95,Default,,0000,0000,0000,,in this case, a decrease in demand
Dialogue: 0,0:01:30.95,0:01:34.47,Default,,0000,0000,0000,,of [sighs] sugary, fizzy drinks,
Dialogue: 0,0:01:34.47,0:01:36.94,Default,,0000,0000,0000,,caused by a viral\Nmarketing campaign
Dialogue: 0,0:01:36.94,0:01:40.03,Default,,0000,0000,0000,,for naturally sweetened\Nsparkling water.
Dialogue: 0,0:01:40.03,0:01:44.14,Default,,0000,0000,0000,,People just aren't as excited\Nabout sugary, fizzy drinks anymore.
Dialogue: 0,0:01:44.14,0:01:47.46,Default,,0000,0000,0000,,The decrease in demand\Nshifts the entire demand curve
Dialogue: 0,0:01:47.46,0:01:48.84,Default,,0000,0000,0000,,down and to the left
Dialogue: 0,0:01:48.84,0:01:53.29,Default,,0000,0000,0000,,and leads, as we know,\Nto a lower quantity at every price.
Dialogue: 0,0:02:01.09,0:02:02.57,Default,,0000,0000,0000,,In the first case, on the left,
Dialogue: 0,0:02:02.57,0:02:05.16,Default,,0000,0000,0000,,we have a decrease\Nin the quantity demanded --
Dialogue: 0,0:02:05.16,0:02:08.28,Default,,0000,0000,0000,,that is a movement\Nalong a fixed demand curve.
Dialogue: 0,0:02:08.28,0:02:11.47,Default,,0000,0000,0000,,In the case on the right,\Nwe have a decrease in demand.
Dialogue: 0,0:02:11.47,0:02:15.17,Default,,0000,0000,0000,,The entire demand curve\Nshifts down and to the left.
Dialogue: 0,0:02:15.17,0:02:16.32,Default,,0000,0000,0000,,An easy way to remember this
Dialogue: 0,0:02:16.32,0:02:19.91,Default,,0000,0000,0000,,is that our graph tracks changes\Nin price and quantity.
Dialogue: 0,0:02:19.91,0:02:23.69,Default,,0000,0000,0000,,If a change occurs in a variable\Nother than price or quantity --
Dialogue: 0,0:02:23.69,0:02:26.71,Default,,0000,0000,0000,,that is, something\Nnot measured on either axis --
Dialogue: 0,0:02:26.71,0:02:29.82,Default,,0000,0000,0000,,that will represent a shift\Nin the demand curve.
Dialogue: 0,0:02:30.44,0:02:34.61,Default,,0000,0000,0000,,Prices on the vertical, or y-axis,\Nso a change in price alone,
Dialogue: 0,0:02:34.61,0:02:37.46,Default,,0000,0000,0000,,will cause movement\Nalong the curve.
Dialogue: 0,0:02:37.46,0:02:40.42,Default,,0000,0000,0000,,A change in income,\Npopulation, tastes, etc. --
Dialogue: 0,0:02:40.42,0:02:42.67,Default,,0000,0000,0000,,none of these are measured\Non either axis,
Dialogue: 0,0:02:42.67,0:02:46.76,Default,,0000,0000,0000,,and thus, we'll see a shift\Nin the entire demand curve.
Dialogue: 0,0:02:47.32,0:02:48.61,Default,,0000,0000,0000,,So there you have it.
Dialogue: 0,0:02:48.61,0:02:50.62,Default,,0000,0000,0000,,Similar terminology\Ncan be confusing,
Dialogue: 0,0:02:50.62,0:02:54.00,Default,,0000,0000,0000,,but if you follow the curves, \Nyou won't have to worry.
Dialogue: 0,0:02:57.34,0:02:58.44,Default,,0000,0000,0000,,If you're a teacher,
Dialogue: 0,0:02:58.44,0:03:00.74,Default,,0000,0000,0000,,you should check out\Nour Supply and Demand unit plan
Dialogue: 0,0:03:00.74,0:03:02.49,Default,,0000,0000,0000,,that incorporates this video.
Dialogue: 0,0:03:02.49,0:03:04.95,Default,,0000,0000,0000,,If you're a learner,\Nmake sure this video sticks
Dialogue: 0,0:03:04.95,0:03:07.61,Default,,0000,0000,0000,,by answering a few\Nquick practice questions.
Dialogue: 0,0:03:07.61,0:03:09.96,Default,,0000,0000,0000,,Or if you're ready\Nfor more microeconomics,
Dialogue: 0,0:03:09.96,0:03:11.62,Default,,0000,0000,0000,,click for the next video.
Dialogue: 0,0:03:12.60,0:03:15.01,Default,,0000,0000,0000,,♪ [music] ♪