You may not realize it, but every time you purchase something, you are participating in a market for that good. Some people supply it, and some people—you!—demand it. In this lecture, we will examine how to analyze supply and demand curves and the impact changes in market conditions and government policy can have on market equilibrium.
Government intervention can impact gasoline prices. Image courtesy of Aaron Tyo-Dikerson on Flickr.
Keywords: Supply and demand; equilibrium; demand shift; supply shift; government interference.
Read the recitation notes, which cover new content that adds to and supplements the material covered in lecture.
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
- [R&T] Chapter 3, "Demand and Supply."
- [R&T] Chapter 4, "Applications of Demand and Supply." Sections 4.1-4.2.
- [Perloff] Chapter 2, "Supply and Demand." (optional)
View Full Video
- Lecture 2: Applying Supply and Demand (00:49:07)
- Transcript - PDF (English-US)
- Caption - SRT (English-US)
Lecture 2: Applying Supply and Demand
View by Chapter
- Overview of Supply and Demand (0:04:16)
- Impact of a Demand Shift (0:07:15)
- Impact of a Supply Shift (0:02:58)
- Government Interference: The Labor Market (0:08:26)
- Government Interference: Gasoline Prices (0:04:57)
- Costs and Benefits of Government Intervention (0:12:39)
- Government Intervention: Water Shortages (0:08:28)
Overview of Supply and Demand
Impact of a Demand Shift
Impact of a Supply Shift
Government Interference: The Labor Market
Government Interference: Gasoline Prices
Costs and Benefits of Government Intervention
Government Intervention: Water Shortages
This concept quiz covers key vocabulary terms and also tests your intuitive understanding of the material covered in this session. Complete this quiz before moving on to the next session to make sure you understand the concepts required to solve the mathematical and graphical problems that are the basis of this course.
These optional resources are provided for students that wish to explore this topic more fully.
See the course website for Econ 302, Intermediate Microeconomics taught at Penn State in 2011.