[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.30,0:00:02.63,Default,,0000,0000,0000,,So, we've been going through all of the others things
Dialogue: 0,0:00:02.63,0:00:04.95,Default,,0000,0000,0000,,that we were assuming are held constant
Dialogue: 0,0:00:04.95,0:00:08.37,Default,,0000,0000,0000,,in order to be moving along one demand curve.
Dialogue: 0,0:00:08.37,0:00:10.03,Default,,0000,0000,0000,,And now let's list a few other[s].
Dialogue: 0,0:00:10.03,0:00:11.51,Default,,0000,0000,0000,,And before I do any more of them,
Dialogue: 0,0:00:11.51,0:00:12.100,Default,,0000,0000,0000,,let's talk about the ones we already talked about.
Dialogue: 0,0:00:12.100,0:00:16.32,Default,,0000,0000,0000,,So – one– we said that one of the things we held constant –
Dialogue: 0,0:00:16.32,0:00:17.45,Default,,0000,0000,0000,,(Let me write this down.)
Dialogue: 0,0:00:17.45,0:00:22.26,Default,,0000,0000,0000,,So – (WRITING: held constant.)
Dialogue: 0,0:00:22.26,0:00:25.71,Default,,0000,0000,0000,,One of the things that we held constant to move along
Dialogue: 0,0:00:25.71,0:00:28.50,Default,,0000,0000,0000,,one demand curve, for the demand itself not to shift –
Dialogue: 0,0:00:28.50,0:00:30.07,Default,,0000,0000,0000,,for the curve not to shift –
Dialogue: 0,0:00:30.07,0:00:37.76,Default,,0000,0000,0000,,is price of related goods. [WRITING]
Dialogue: 0,0:00:37.76,0:00:40.90,Default,,0000,0000,0000,,The other thing we assumed that's being held constant
Dialogue: 0,0:00:40.90,0:00:45.76,Default,,0000,0000,0000,,is price expectations for our good. [WRITING]
Dialogue: 0,0:00:45.76,0:00:48.18,Default,,0000,0000,0000,,And now we'll list a couple of them that are fairly intuitive.
Dialogue: 0,0:00:48.18,0:00:49.76,Default,,0000,0000,0000,,But you'll see that in the next few videos,
Dialogue: 0,0:00:49.76,0:00:52.72,Default,,0000,0000,0000,,that there are often special cases even to this.
Dialogue: 0,0:00:52.72,0:00:55.34,Default,,0000,0000,0000,,So, the other thing that we've been holding constant
Dialogue: 0,0:00:55.34,0:00:59.46,Default,,0000,0000,0000,,to stay on one demand curve is income.
Dialogue: 0,0:00:59.46,0:01:01.19,Default,,0000,0000,0000,,And this one is fairly intuitive.
Dialogue: 0,0:01:01.19,0:01:05.12,Default,,0000,0000,0000,,What happens if everyone's income were to increase?
Dialogue: 0,0:01:05.12,0:01:07.71,Default,,0000,0000,0000,,And, in real terms, it were to actually increase?
Dialogue: 0,0:01:07.71,0:01:08.68,Default,,0000,0000,0000,,Well, then, all of a sudden,
Dialogue: 0,0:01:08.68,0:01:10.33,Default,,0000,0000,0000,,they have more disposable income –
Dialogue: 0,0:01:10.33,0:01:12.64,Default,,0000,0000,0000,,naybe to spend on something like e-books.
Dialogue: 0,0:01:12.64,0:01:14.67,Default,,0000,0000,0000,,And so, for any given price point,
Dialogue: 0,0:01:14.67,0:01:15.94,Default,,0000,0000,0000,,the demand would increase.
Dialogue: 0,0:01:15.94,0:01:18.38,Default,,0000,0000,0000,,And so, it would increase the demand.
Dialogue: 0,0:01:18.38,0:01:20.11,Default,,0000,0000,0000,,And once again, when we talk about increasing demand,
Dialogue: 0,0:01:20.11,0:01:22.93,Default,,0000,0000,0000,,we're talking about shifting the entire curve.
Dialogue: 0,0:01:22.93,0:01:25.81,Default,,0000,0000,0000,,We're not talking about a particular quantity of demand.
Dialogue: 0,0:01:25.81,0:01:30.01,Default,,0000,0000,0000,,So, income goes up, then [that] increases demand.
Dialogue: 0,0:01:30.01,0:01:32.61,Default,,0000,0000,0000,,[WRITING] Demand goes up.
Dialogue: 0,0:01:32.61,0:01:36.02,Default,,0000,0000,0000,,And remember ... when demand goes up,
Dialogue: 0,0:01:36.02,0:01:37.08,Default,,0000,0000,0000,,we're talking about the whole curve shifting to the right.
Dialogue: 0,0:01:37.10,0:01:38.90,Default,,0000,0000,0000,,At any given price point,
Dialogue: 0,0:01:38.90,0:01:42.37,Default,,0000,0000,0000,,we are going to have a larger quantity demanded.
Dialogue: 0,0:01:42.37,0:01:43.99,Default,,0000,0000,0000,,So the whole curve,
Dialogue: 0,0:01:43.99,0:01:45.27,Default,,0000,0000,0000,,this whole demand schedule would change.
Dialogue: 0,0:01:45.27,0:01:48.83,Default,,0000,0000,0000,,And likewise, if income went down, demand would go down.
Dialogue: 0,0:01:48.83,0:01:49.87,Default,,0000,0000,0000,,And [as] we're going to see in a future video,
Dialogue: 0,0:01:49.87,0:01:51.56,Default,,0000,0000,0000,,it's actually quite interesting,
Dialogue: 0,0:01:51.56,0:01:53.43,Default,,0000,0000,0000,,that's not, always ... the case.
Dialogue: 0,0:01:53.43,0:01:58.38,Default,,0000,0000,0000,,This is only true for normal goods.
Dialogue: 0,0:01:58.38,0:02:00.53,Default,,0000,0000,0000,,[WRITING] "normal goods."
Dialogue: 0,0:02:00.53,0:02:03.23,Default,,0000,0000,0000,,And in a future video we'll see goods called "inferior goods,"
Dialogue: 0,0:02:03.23,0:02:05.43,Default,,0000,0000,0000,,where this is NOT necessarily the case.
Dialogue: 0,0:02:05.43,0:02:07.46,Default,,0000,0000,0000,,Or, by definition, for an inferior good,
Dialogue: 0,0:02:07.46,0:02:09.82,Default,,0000,0000,0000,,it would not be the case.
Dialogue: 0,0:02:09.82,0:02:12.14,Default,,0000,0000,0000,,Now the other ones that are somewhat intuitive
Dialogue: 0,0:02:12.14,0:02:15.63,Default,,0000,0000,0000,,are population. [WRITING]
Dialogue: 0,0:02:15.63,0:02:18.14,Default,,0000,0000,0000,,Once again, if population goes up --
Dialogue: 0,0:02:18.14,0:02:20.14,Default,,0000,0000,0000,,obviously -- at any given price point,
Dialogue: 0,0:02:20.14,0:02:21.80,Default,,0000,0000,0000,,more people will want it.
Dialogue: 0,0:02:21.80,0:02:23.40,Default,,0000,0000,0000,,So, it would shift the demand curve to the right --
Dialogue: 0,0:02:23.40,0:02:25.21,Default,,0000,0000,0000,,or it would increase demand.
Dialogue: 0,0:02:25.21,0:02:28.89,Default,,0000,0000,0000,,If population were to go down, it would decrease demand,
Dialogue: 0,0:02:28.89,0:02:32.20,Default,,0000,0000,0000,,which means shifting the whole curve to the left.
Dialogue: 0,0:02:32.20,0:02:33.68,Default,,0000,0000,0000,,And then the last one we'll talk about --
Dialogue: 0,0:02:33.68,0:02:35.65,Default,,0000,0000,0000,,And remember, we're holding all these things constant
Dialogue: 0,0:02:35.65,0:02:37.49,Default,,0000,0000,0000,,in order for demand not to change.
Dialogue: 0,0:02:37.49,0:02:40.57,Default,,0000,0000,0000,,The last thing is just preferences.
Dialogue: 0,0:02:40.57,0:02:42.08,Default,,0000,0000,0000,,We're assuming that people's tastes
Dialogue: 0,0:02:42.08,0:02:43.75,Default,,0000,0000,0000,,and preferences don't change
Dialogue: 0,0:02:43.75,0:02:46.90,Default,,0000,0000,0000,,while we move along a specific demand curve.
Dialogue: 0,0:02:46.90,0:02:50.57,Default,,0000,0000,0000,,If preferences actually change, then it will change the curve.
Dialogue: 0,0:02:50.57,0:02:56.48,Default,,0000,0000,0000,,So, for example, if, all of a sudden ... the author of [a] book
Dialogue: 0,0:02:56.48,0:02:58.58,Default,,0000,0000,0000,,is on some very popular show --
Dialogue: 0,0:02:58.58,0:03:01.08,Default,,0000,0000,0000,,talk show -- that tells everyone
Dialogue: 0,0:03:01.08,0:03:03.35,Default,,0000,0000,0000,,that this is the best book that was ever written,
Dialogue: 0,0:03:03.35,0:03:05.30,Default,,0000,0000,0000,,then preferences would go up,
Dialogue: 0,0:03:05.30,0:03:07.90,Default,,0000,0000,0000,,and that would increase the total demand.
Dialogue: 0,0:03:07.90,0:03:09.52,Default,,0000,0000,0000,,At any given price point,
Dialogue: 0,0:03:09.52,0:03:11.32,Default,,0000,0000,0000,,more people would be willing to buy the book.
Dialogue: 0,0:03:11.32,0:03:13.66,Default,,0000,0000,0000,,If, on the other hand, on that same talk show,
Dialogue: 0,0:03:13.66,0:03:16.16,Default,,0000,0000,0000,,it turns out that they do an exposé
Dialogue: 0,0:03:16.16,0:03:18.62,Default,,0000,0000,0000,,on the author having this sordid past
Dialogue: 0,0:03:18.62,0:03:20.49,Default,,0000,0000,0000,,and [they state that] the author plagiarized the whole book,
Dialogue: 0,0:03:20.49,0:03:22.80,Default,,0000,0000,0000,,then the demand will go down.
Dialogue: 0,0:03:22.80,0:03:25.05,Default,,0000,0000,0000,,The entire curve, regardless of the price point --
Dialogue: 0,0:03:25.05,0:03:26.43,Default,,0000,0000,0000,,at any given price point --
Dialogue: 0,0:03:26.43,0:03:32.38,Default,,0000,0000,0000,,the quantity demanded will actually go down.