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Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.39,0:00:03.21,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:13.81,0:00:15.61,Default,,0000,0000,0000,,- [Narrator] Economists\Nuse similar terms
Dialogue: 0,0:00:15.61,0:00:17.63,Default,,0000,0000,0000,,for two things\Nwhich are quite different:
Dialogue: 0,0:00:17.63,0:00:23.01,Default,,0000,0000,0000,,a change in the quantity demanded\Nversus a change in demand.
Dialogue: 0,0:00:23.01,0:00:25.46,Default,,0000,0000,0000,,It can be a little confusing,\Nso let's review.
Dialogue: 0,0:00:25.46,0:00:27.26,Default,,0000,0000,0000,,A change in quantity demanded
Dialogue: 0,0:00:27.26,0:00:30.97,Default,,0000,0000,0000,,refers to a movement\Nalong a fixed demand curve --
Dialogue: 0,0:00:30.97,0:00:32.97,Default,,0000,0000,0000,,that's caused by a change in price.
Dialogue: 0,0:00:34.06,0:00:38.49,Default,,0000,0000,0000,,Change in demand refers to\Na shift in the demand curve --
Dialogue: 0,0:00:38.49,0:00:41.21,Default,,0000,0000,0000,,that's caused by one\Nof the shifter's income,
Dialogue: 0,0:00:41.21,0:00:46.46,Default,,0000,0000,0000,,preferences, changes\Nin the price of goods and so on.
Dialogue: 0,0:00:46.46,0:00:49.22,Default,,0000,0000,0000,,Let's illustrate the difference\Nwith a refreshing example.
Dialogue: 0,0:00:49.22,0:00:51.88,Default,,0000,0000,0000,,We'll use soda.
Dialogue: 0,0:00:51.88,0:00:53.22,Default,,0000,0000,0000,,Um, don't you mean pop?
Dialogue: 0,0:00:53.22,0:00:55.11,Default,,0000,0000,0000,,That's coke, y'all!
Dialogue: 0,0:00:55.11,0:00:58.56,Default,,0000,0000,0000,,Actually, soft drink\Nis the most accurate term, so...
Dialogue: 0,0:00:58.56,0:01:01.33,Default,,0000,0000,0000,,- [Narrator] Fine, we'll just use\Nsugary, fizzy drink, okay?
Dialogue: 0,0:01:01.33,0:01:05.02,Default,,0000,0000,0000,,First, let's recall a change\Nin the quantity demanded.
Dialogue: 0,0:01:05.02,0:01:07.67,Default,,0000,0000,0000,,Suppose the price\Non sugary, fizzy drinks
Dialogue: 0,0:01:07.67,0:01:09.97,Default,,0000,0000,0000,,goes from $3 to $4.
Dialogue: 0,0:01:09.97,0:01:11.46,Default,,0000,0000,0000,,What happens?
Dialogue: 0,0:01:11.46,0:01:16.66,Default,,0000,0000,0000,,Well, the quantity demanded\Ndecreases from 200 to 250.
Dialogue: 0,0:01:16.66,0:01:19.22,Default,,0000,0000,0000,,There's a decrease\Nin the quantity demanded
Dialogue: 0,0:01:19.22,0:01:22.24,Default,,0000,0000,0000,,marked by movement\Nalong the demand curve.
Dialogue: 0,0:01:22.24,0:01:25.29,Default,,0000,0000,0000,,But there's no change\Nin the existing demand curve.
Dialogue: 0,0:01:26.36,0:01:28.94,Default,,0000,0000,0000,,Now, let's look at\Na change in demand,
Dialogue: 0,0:01:28.94,0:01:31.66,Default,,0000,0000,0000,,in this case, decrease\Nin the demand of
Dialogue: 0,0:01:32.59,0:01:34.69,Default,,0000,0000,0000,,(sighs) sugary, fizzy drinks
Dialogue: 0,0:01:34.69,0:01:37.16,Default,,0000,0000,0000,,caused by a viral\Nmarketing campaign
Dialogue: 0,0:01:37.16,0:01:40.14,Default,,0000,0000,0000,,for naturally sweetened,\Nsparkling water.
Dialogue: 0,0:01:40.14,0:01:44.26,Default,,0000,0000,0000,,People just aren't as excited\Nabout sugary, fizzy drink anymore.
Dialogue: 0,0:01:44.26,0:01:47.68,Default,,0000,0000,0000,,The decrease in demand\Nshifts the entire demand curve
Dialogue: 0,0:01:47.68,0:01:49.06,Default,,0000,0000,0000,,down into the left
Dialogue: 0,0:01:49.06,0:01:53.51,Default,,0000,0000,0000,,and leaves, as we know,\Nto a lower quantity at every price.
Dialogue: 0,0:02:01.31,0:02:02.79,Default,,0000,0000,0000,,In the first case, on the left,
Dialogue: 0,0:02:02.79,0:02:05.38,Default,,0000,0000,0000,,we have a decrease\Nin the quantity demanded --
Dialogue: 0,0:02:05.38,0:02:08.68,Default,,0000,0000,0000,,that is a movement\Nalong a fixed demand curve.
Dialogue: 0,0:02:08.68,0:02:10.04,Default,,0000,0000,0000,,In the case on the right,\Nwe have a decrease in demand,
Dialogue: 0,0:02:10.04,0:02:15.39,Default,,0000,0000,0000,,the entire demand curve\Nshifts down into the left.
Dialogue: 0,0:02:15.39,0:02:16.54,Default,,0000,0000,0000,,An easy way to remember this
Dialogue: 0,0:02:16.54,0:02:20.13,Default,,0000,0000,0000,,is that our graph track changes\Nin price and quantity.
Dialogue: 0,0:02:20.13,0:02:23.91,Default,,0000,0000,0000,,If a change occurs in a variable\Nother than price or quantity --
Dialogue: 0,0:02:23.91,0:02:26.93,Default,,0000,0000,0000,,that is, something\Nnot measured on either axis --
Dialogue: 0,0:02:26.93,0:02:30.66,Default,,0000,0000,0000,,that will represent a shift\Nin the demand curve.
Dialogue: 0,0:02:30.66,0:02:34.83,Default,,0000,0000,0000,,Prices on the vertical or y-axis,\Nso change in price alone,
Dialogue: 0,0:02:34.83,0:02:37.68,Default,,0000,0000,0000,,will cause movement\Nalong the curve.
Dialogue: 0,0:02:37.68,0:02:40.53,Default,,0000,0000,0000,,A change in income,\Npopulation, tastes, etc. --
Dialogue: 0,0:02:40.53,0:02:42.89,Default,,0000,0000,0000,,none of these are measured\Non either axis
Dialogue: 0,0:02:42.89,0:02:47.54,Default,,0000,0000,0000,,and thus, we'll see a shift\Nin the entire demand curve.
Dialogue: 0,0:02:47.54,0:02:48.83,Default,,0000,0000,0000,,So there you have it.
Dialogue: 0,0:02:48.83,0:02:50.68,Default,,0000,0000,0000,,Similar terminology\Ncan be confusing,
Dialogue: 0,0:02:50.68,0:02:54.22,Default,,0000,0000,0000,,but if you follow the curves, \Nyou won't have to worry.
Dialogue: 0,0:02:57.56,0:02:58.66,Default,,0000,0000,0000,,If you're a teacher,
Dialogue: 0,0:02:58.66,0:03:00.96,Default,,0000,0000,0000,,you should check out\Nour supply in demand [ ]
Dialogue: 0,0:03:00.96,0:03:02.71,Default,,0000,0000,0000,,that incorporates this video.
Dialogue: 0,0:03:02.71,0:03:05.07,Default,,0000,0000,0000,,If you're a learner,\Nmake sure this video sticks
Dialogue: 0,0:03:05.07,0:03:07.83,Default,,0000,0000,0000,,by answering a few\Nquick practice questions.
Dialogue: 0,0:03:07.83,0:03:10.11,Default,,0000,0000,0000,,Or if you're ready\Nfor more microeconomics,
Dialogue: 0,0:03:10.11,0:03:11.84,Default,,0000,0000,0000,,click for the next video.
Dialogue: 0,0:03:12.82,0:03:15.23,Default,,0000,0000,0000,,♪ [music] ♪