State whether “other things constant” is likely to hold in the following supply/demand analyses.

State whether "other things constant" is likely to hold in the following supply/demand analyses: a. The impact of an increase in the demand for pencils on the price of pencils. b. The impact of an increase in the supply of labor on the quantity of labor demanded. c. The impact of an increase in aggregate savings on aggregate expenditures. d. The impact of a new method of producing CDs on the price of CDs.

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Video Transcript

all right. They were looking at how demand and supply curves affects the equilibrium, price and quantity in a competitive market. Right? So these air left application questions more, just just so you can grasp the knowledge on how basic supply and demand curve shifts effect the clever and price or quantity. So there's around 89 questions here. We're gonna go one by one, turning off supply decreases and demand is constant. So the answer's each of these questions. I see this in most my videos. It's always important to draw supply demand proof just to make sure that, um, all the thinking is correct and you can see exactly what you're thinking. Devoid, avoid mistakes, close the supplied decreases and demand is constant. So when supply decreases, it goes leftward, right? And we see that this was equilibrium one right? And now this is equilibrium. You So equilibrium one. This is where corny was here. One price once that once supplied decreased right, many new equilibrium where price went up, the quality but lower right? So when supply decreases and demand is concert, we see in an increase in price and a deep respect Yes, All right. Second question. Uh, demand decreases and supply is constant. Right? So this time we keep supplying constant and we shift demand. Um, left foods here. Let's look at the equilibrium Prices now, before we were ill, break you right on a price. Thats was the old corner here, if you want and be one. And now with this shift, we see corny going outwards and price also going to ours. So is so. In conclusion. Try schools lower and coronary goes lower when demand decreases and supplies constant Well. So you guys probably get how where I'm getting at over here. Someone go through these next couple once fairly quickly. So supply in Jesus and demand is constant Slower than the Gersh defensive again, right? Corny playing ceases. She gets a play going this way. Shape. This is the past equilibrium here. That was you. Shift in supply. We see corny rising over huge in price declining over here. Go ahead and say price decreases and quality increases when supply um, increases in demand is constant, right? I shouldn t demand increases and supply increases, right? A functionary society. Yeah. All right. We see both east curves increased, so let's go ahead and drop it over this one and many one. Right now, this question is a little bit more tricky because So let's try the equally bring me before here, Q one, the one now supply and demand both increase. Right, So we can see. We see that corny obviously increases here. Thank you to see quantity, but Price, we don't know you straight like you can make out that is higher or lower, but it all depends on the magnitude of the shifts. Right. So we're actually uncertain whether or not price increases or decreases here so we can conclude here that quantity for sure increases. But you can see that obviously price here is unknown, right? And that's that's the final answer there. So when supply and demand both increase corny rises and price is unknown and like we could figure out Christ by getting into the nitty gritty of how by how much it shifted looking at determinants off the shift and so on. Question. Um, the man increases in supply. So we got a man blood. She, um man increases constant. You see, here in just previously equilibrium over here, you equilibrium over here, right? We could see that prices injuries. Same. Same with Courtney. So when demand increases and supplies constant price rises and quite right with this watch question supply increases in demand. So, sir, by increasing demand, accuses you so. But its function again. Um, OK, so supply increases here to get s one over here and demand decreases. All right, cool. So this was our past equilibrium? Yeah. Here. Um, now we see that with demand decreasing and supplied increasing this next equally room similar to question the I think was right. So it could be upwards. It could be downwards, right? We don't know that. So many questions. It's the same thing over here. So we know. Obviously, the price has decreased, right? But in terms of the choir, me, that is, as of now unknown. Right? So we can It was therefore statement here said, when supply increases in demand decreases price declines and the change of quantity is unknown, right? We need more information in terms of the magnitude of the shift. Is this little to figure out defect on quality? Next question, G, uh, men increases in supply cheeses. Right? Um, so when demand increases or do you want and supply decreases. So we got past equally dream over here in the new equilibrium. Similar to the other unknown questions we've had. We've seen an obvious increased in price, but not so obvious change in the corny right? It could be last word or it could be right words we just don't know. So when we don't know, our were uncertain weaken simply this right that the man increases in supply decreases price goes up and corn use shift remains unknown. Final question here while those eight questions here. So the man decreases and supply also right? So we've seen the shift. Hours left words and supply and demands over here. Previous equilibrium It's always important are important but helpful to drop equilibrium all the way to the axes so you can easily read it, right? So, like how I didn't mostly questions, I always tried out the exits. Cool. So we've seen an obvious. I actually should not have drawn that because it's not so obvious. We've seen that quantity actually decreases, right? That's pretty obvious. But with price again, as we've seen in past questions, um, the changes No obvious. Right. Um, we don't know the magnitude, and so we could easily some appear that price is unknown with a corny obscenity clients. When demand increases in supply, three priests cools. Those are just a simple, very simple questions on how changes in supply and demand affect the equilibrium. Praise right. We can easily make out whether or not price increase, uh, decreased or remained unchanged. Same with the quantity. So yeah. 00 no. This video should really just help you graph out the supply Demand occurs and see how the shifts equilibrium see the next.