This tutorial tries to address a very important question in the real world--what drives oil prices? And we will do it using the tools of the supply and demand curves.
You understand demand and supply. This tutorial puts it all together by thinking about where the two curves intersect. This point represents the equilibrium price and quantity which is, in an ideal world, where the market would transact.
You've probably heard of supply and demand. Well, this tutorial focuses on the demand part. All else equal, do people want more or less of something if the price goes down (what would you do)? Not only will you get an intuition for the way we typically depict a demand curve, you'll get an understanding for what might shift it.
This tutorial (that only has one video) is an overview of what economics is. In particular it will tell you the difference between microeconomics (the subject you're in right now) and macroeconomics. Really good first watch to give you some context on the world of economics.
Now we'll focus on the "supply" part of supply and demand. Supply curves (as we typically depict them) come out of the idea that producers will make more if they get paid more.
All video content by Khan Academy is under their license: CC by NC SA
Website created using Khan Academy Static Downloader