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Factors affecting supply | Supply, demand, and market equilibrium | Microeconomics | Khan Academy

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How the price of inputs, price of related goods, number of suppliers technology, and expected future prices affects the supply curve Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/supply-curve-tutorial/v/long-term-supply-curve-1?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/supply-curve-tutorial/v/law-of-supply?utm_source=YT&utm_medium=Desc&utm_campaign=microeconomics Microeconomics on Khan Academy: Topics covered in a traditional college level introductory microeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Microeconomics channel: https://www.youtube.com/channel/UC_6zQ54DjQJdLodwsxAsdZg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
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Text Comments (24)
Aleksandar Skoric (3 months ago)
1:06 "..so if the price of my co-"
Khaled Fadl (9 months ago)
Man I don't understand !
Manaickiller Draciaux (1 year ago)
Grapes are Blu
Nithin Alluri (3 years ago)
How did you go to oil all of a sudden
Ansh :D (2 years ago)
Bec grapes will go bad if you hoard it and sell it in the future so he used oil instead as an example
Matt Dias (3 years ago)
1:31 "i would shit the hole"...........nice
Manaickiller Draciaux (1 year ago)
U better "Shit the Hole" faster
Josh Lau (3 years ago)
this is a great video
VitaminMePlease (3 years ago)
Is the law of supply from the producer's point of view? As in, does price mean costs of production/inputs to producer or does it mean cost of the grapes to consumers?
VitaminMePlease (3 years ago)
Thank you!
Corey O'Brien (3 years ago)
+Corey O'Brien And when looking at factors that affect supply, price - referring to price of grapes for consumers - is held constant. This allows us to look at how something that is variable, or changes, affects the behavior of the seller of grapes. Does that make sense?
Corey O'Brien (3 years ago)
From seller's point of view.
Raki Sathark (4 years ago)
1:30 "I would shit" lmao 
Ralph Laurence Tabuyo (2 years ago)
o
Lauris Skraucis (5 years ago)
Thanks for video , but the price is choosen by one person or it is in the market (maybe the average cost per 1 lb in market)?
Manaickiller Draciaux (1 year ago)
I just pressed Read more and Shit my pants then closed the read more
Lauris Skraucis (4 years ago)
thanks
Sam Whitten (4 years ago)
Theoretically the market, but in actuality it's a combination of both. If no one is producing grapes and I have cornered the market, I can charge any price I choose, so long as it is somewhat in line with demand (meaning I can produce a sort of artificial inflation), and people will be forced to pay me that. But if I have competition I will be forced to undercut my competitors price, and it will become less profitable to produce grapes because I alone don't reap the profits, rather two individual actors now receive the profits among themselves. The problem with that in order to hold a profit margin they are unable to charge below a certain price, and in order to drive prices lower they cut production costs (I.E. pay workers less) and this leads to increasing poverty and less market growth because workers are unable to afford even the goods they are producing. Thus wages must increase and the prices can no longer be cut past a certain point. Now whichever actor is willing to temporarily reap less profits (or has enough money to temporarily go under on production costs) will be able to defeat the other in the price war. This means that workers can now be paid just enough to support market growth while the company itself can charge anything it chooses for grapes (Because, now, it alone controls the market for grapes and alone it reaps the profits)  
dubbybear3 (5 years ago)
lol
BlueSkies (6 years ago)
But...with the increase in suppliers, wouldn't there be more competition? Wouldn't that lead to them reducing the prices so that there's more demand for their particular product? I guess that's Market Equilibrium stuff...
Mahesh R (3 months ago)
This confused me at first but when listening again he is referring to the amount of people that the PRODUCER (you) is supplying. You're giving your product to the people that supply the market. Imagine a supermarket or something. The more supermarkets that there are the greater the supply would need to be because otherwise you're at a shortage. Any shortage is loss of income. Even though this was 6 years ago it helped me in understanding from my point of view, so I guess a thank you is in order. Thanks.
BenGenio (7 years ago)
Those who can, think of the Five Forces Model of Porter when listing to this.
66Snuffleupagus (7 years ago)
Lol
Justan Edwards (7 years ago)
First

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