This course offers an introduction to the functions of individual decision-makers—both consumers and producers—within the larger economic system. Emphasis is on the nature and functions of product markets, the theory of the firm under varying conditions of competition and monopoly, and the role of government in promoting efficiency in the economy. Most people make the incorrect assumption that economics is ONLY the study of money. My primary goal in this course is to shatter this belief. During this course, we will be addressing the above questions as well as many more relating to: -the environment -love and marriage -crime -labor markets -education -politics -sports -business My main goal is to show you the way economists think and how to use this analytical system to answer questions related not only to these and other important human issues, but to anything you end up doing with your life after this class. After all, as you will quickly find out, I believe that everything is economics!
3.3. Price of an Input Changes
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来自 University of Illinois at Urbana-Champaign 的课程
微观经济学原理
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从本节课中
Supply and Demand
Welcome to your second week in Microeconomics Principles! This module we will cover the hallmark framework of the field: the supply and demand model. I am sure that if you knew any economics words before enrolling in this course those two words were supply and demand. This module you will finally learn what all the fuss is about.
与讲师见面
Dr. José J. Vázquez-CognetClinical Professor
Department of Economics
>> [SOUND] Okay. So, we look at price.
Now, let's look at the other determine of demand supply the price of the inputs.
>> We think about the price of the inputs a good example when we talk about
tomatoes will be >> gasoline,
>> right? You need gasoline to, to power your tractor to. You need gasoline
to power your car, to take the tomatoes to the farmers market from the farm.
>> So clearly, gasoline is an input that you're going to need in order to
produce tomatoes. >> So, imagine if you're a farmer and
the price of the gasoline >> change.
>> Let's say, the price of gasoline increases.
>> Well clearly, you're going to have to pay more money to transfer your
tomatoes from your farm to the farmer's market, and you're also going to have to
pay more money to power the tractor to plow the field to produce the tomatoes.
>> So, every tomato that you produce now, because the gasoline is, is more
expensive, will cost you more. >> And remember, what we said the, the
supply side of the market is a cost side of the market.
>> So now, if the price of gasoline is higher, the cost of producing those
tomatoes for you will also be higher. >> So, if the cost of producing
tomatoes is higher, how is that going to effect the supply in this supply schedule
that we have? Well,
>> one possibility could be that perhaps, the price, all the cost of your
tomatoes will go up, let's say, by exactly, I don't know $2, right? So now
when the price is zero, you still produce nothing. But when the, when the price is
2, >> it's still too, actually too cheap
for you to produce because the, your costs are actually higher.
>> So, what I'm saying here is that [COUGH] since your costs increased,
you're going to need a price of $4 in order to be able to cover your costs. In
order to sell any tomatoes. >> And now, that transfer across the
whole supply, that when the price is six >> actually, [NOISE]
>> so let, let's start, let's say that it's 2 so we have, make this consistent
with the other one. >> And then when the price is 6, you
can produce 4. When the price is 8, you do 6, when the price is 10, you do 8, and
when the price is 10, you do 12. >> So, you were forced
>> to cut some of the supply of tomatoes because it costs you more to
supply tomatoes. >> In essence, what's happening is that
since it, it's more expensive for you to supply tomatoes, because you have to pay
more money in the farmers you bring your tomatoes to the farmer's market, you are
going to have to pass some of that increased cost to the consumers by
increase, by requiring a higher price in order for you to sell.
>> So, the whole structure of your supply changed, and you can see that in
the table. And see, again the structure of your
supply change, that means that your whole supply demand will actually change, too.
>> And now, you're actually saying, well, 0,0, when price is 2, you're also
at 0, >> [SOUND] right? And when the price is
4, now you're at 2, so now you're here. >> And when the price is 6, you're at
4. >> So you see that now you have a whole
new supply which is going to be everywhere to the left of the original
supply curve. >> [SOUND] All right.
>> And I'm going to cheat here a little, and I'm going to make this point
like really big to, [SOUND] there. It passed through there.
>> so what we have here is that when the, a change in the price of the inputs,
when the price of the inputs change, it will affect the whole structure of your
supply, because your costs increase. >> In this case, the price of the
inputs went up. >> The cost of producing tomatoes
increase, that means a whole new column. And that means the shift of the supply
curve to the left, >> right? So a change, again, the what
if, the price of the inputs changes? If the price of the inputs changes, your
supply shift. >> And if the cost increases, your
supply would shift to the left. >> And the opposite would have happened
if your price of gasoline goes down. >> If the price, if the price of
gasoline goes down, then it's cheaper for you to provide tomatoes.
>> And you could be able to sell tomatoes even at a lower price than
before. >> You will pass some of those savings
to consumers and you will make some more money in the process.
>> So, when the price of your inputs go down, your cost decreases and you would
shift your supply to the right, >> right? So, this happens when
>> the cost of producing anything goes down.
>> Now one thing that you have to be careful here, I don't know if you realize
this, is that I would not recommend to you to use the language, the supply curve
goes up or the supply curve goes down. >> Because that actually is is, is the
opposite of what's happening. >> If you think about this, for example
>> in this case the supply of tomatoes went down because it's actually, it's
more expensive so there's going to be less supply that would be
>> priced. >> But if you look at the, the diagram,
the curve shift up. >> So, if you, if you tend to use the
language, the curve, the supply curve goes up when the supply curve when the
cost increases, that'll be incorrect. >> So, what you should do is if the
cost >> increases, the supply curve shift to
the left. >> If the cost decrease, the supply
curve shift to the right. >> So, use left and right instead of up
and down when you're talking about the diagram.
>> Alright. >> So, let's do one more let's do the
change in technology and let's do a little page for that.
[SOUND] >> Produced by OCE Atlas Digital Media
at the University of Illinois, Urbana-Champagne.
[SOUND]
