Supply

  

Categories: Accounting, Econ

Stuff. As in: half of the Supply-Demand Show, now airing Tuesday nights on NBC.

In Micro Econ, i.e. focus on the firm, supply usually refers to the raw materials that go into production. You have supplies in inventory. They get tweaked and melted and assembled and eventually become part of the whosamawhut.

At a Macro Econ level, supply refers to the stuff available for sale to a broad array of people. The early adopters willing to pay lots. The marginal adopter willing to pay...meh. The curve meets with demand in this fashion, and sales are made.

See: Supply-Demand Curve.

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Econ: What are Determinants of Supply an...17 Views

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And finance Allah Shmoop what are determinants of supply and

00:06

demand All right people we're going to follow the little

00:10

shonka that could you know shonka is those super warm

00:13

Russian hats with the ear flaps You have those things

00:16

Well the journey of this little yushenko will show us

00:18

all the ways demand curves and supply curve can shift

00:21

and how those shifts can affect the market So there's

00:24

this little Jew shonka that was made in a factory

00:27

in Siberia waiting to find it's forever head to Don

00:31

there that thing But the Russian currency the ruble took

00:33

a tumble and the economy took a tumble with it

00:36

When the ruble any economy took a tumble together Well

00:38

so did people's incomes Because so many Russians had a

00:42

change in income they were buying fewer hats Well this

00:45

change in income made the demand for Yushchenko's go down

00:50

which shifted the demand Kerr for Yushchenko's inward Well what

00:53

happened when the demand Kerr for you shank has shifted

00:56

inward Well you sh uncles are produced the supply Yeah

00:59

that thing and sold the demand at the price and

01:02

quantity where the two lines cross right there that little

01:05

dot thing well when the demand curve get shifted inward

01:07

it decreases both the price and the quantity for you

01:10

shank a market equilibrium which is bad for you Shonka

01:14

is trying Teo you know find there forever Heads if

01:17

you think that's bad While things would get even more

01:19

hopeless for the little you shonka Sorry we're just keeping

01:22

it real here These other hats foreign hats called Beanies

01:25

dropped in price in the Russian market when the economy

01:28

went down And since the price of a substitute half

01:30

rue Shankar's went down while the demand her for a

01:32

shank has shifted even further inward Eventually the economy bounced

01:36

back though And with it Russia was so overjoyed that

01:39

they had a baby boom Well this change in number

01:42

of buyers thanks to an increase in you know population

01:45

shifted the demand Kerr for you Shank is up that

01:48

way But not as much as our little lukashenka would

01:50

have expected Why Well young Russians had gotten used to

01:54

the Beanies Young Russians had a preference for Beanies over

01:58

Yushchenko's and then another unfortunate even occurred climate change Yes

02:03

Climate change made the Russian winters less miserably cold which

02:06

made Yushchenko's well less useful This change in usefulness of

02:10

Yushchenko's made the demand Kerr for Shankar's shift even further

02:13

Inwards down down down the demand for you Shankar's went

02:16

our poor little Lucia Anka Would it ever be sold

02:19

Our story wouldn't be complete without looking at what happened

02:22

to the supply curve Well guess what There used to

02:24

be a tariff on Yushchenko's sold outside of Siberia on

02:28

the one sold to the non Siberian parts of Russia

02:31

The Kremlin saw the demand curve for the iconic wish

02:34

Anca shift inward and decided to remove the shank A

02:37

tear of right dead weight loss gone Thanks to this

02:40

change in government policy the supply curve foryou Shankar's shifted

02:43

outward again that way Better yet you shank a factory

02:46

started making you Shankar Bo for rather than real fur

02:50

to appeal to the preferences of vegetarians and vegans and

02:54

Socialist which reduced overall production costs and for was in

02:58

short supply anyway all because of that whole global warming

03:01

thing and making it a whole lot more expensive and

03:03

hard to find Well this change in production costs shifted

03:05

this placard for Yushchenko's even further upward While that was

03:09

good for all the little of Shankar's friends it wasn't

03:11

necessarily good for it You know personally being a for

03:15

you Shonka we'll still It gave the little lukashenka hope

03:17

hope that was much needed after all those drops in

03:20

the demand curve To try to compete with the Beanies

03:22

you shank a factory invested in new technology which further

03:25

shifted you shank a supply curve outward basically more hat

03:29

making robots and fewer hat making people you know like

03:32

what happened with car production in soon McDonald's one winter

03:35

there was ah horrible winter storm in Russia Yes the

03:38

most horrible of all The storm tore off many roofs

03:41

including the shank a factory roof Our little Lou Shaka

03:44

almost blew away But well this geographic influence caused you

03:48

shonka supply curve to shift inward that way once the

03:52

storm passed people who didn't have Yushchenko's while they regretted

03:56

it you know regretted that they didn't have one resulting

03:58

in an increase in demand for you shank as a

04:01

symbol of Russian solidarity against the bitter cold At last

04:05

our little lukashenka the last reel for Yushchenko was sold

04:08

and found It's forever head The little Lou Shankar's forever

04:12

had belonged to a young cheery Siberian boy even though

04:14

that hat was too big a time The boy's father

04:17

said that if he kept his ooh shonka in good

04:19

condition he could use it until his head was big

04:21

enough And for decades afterwards well too bad A Siberian

04:25

monkey stole it off the boy's head just a minute

04:27

later Yeah well happens anyway just to some five things

04:30

that can cause a shift in demand Curves are changes

04:33

in income price substitutes number of buyers like population growing

04:38

or shrinking tastes and preferences for not for and usefulness

04:41

like a zit cold out or not And for things

04:44

that can shift the supply curve are changes in production

04:47

costs New technology Yes Hello Robot geographic influences in taxes

04:51

Stuff like that Like changes in government policy So remember

04:55

when the supply and demand curves shift It changes the

04:58

price and quantity where the two lines intersect changing the

05:01

equilibrium and also remember Teo you know watch out for

05:05

those Siberian monkeys Yeah they're part alien We think right

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