In which Adriene Hill and Jacob Clifford teach you about one of the fundamental economic ideas, supply and demand. What is supply and demand? Well, you’ll have to watch the video to really understand it, but it’s kind of important for everything economically. Supply and demand sets prices, and indicates to manufacturers how much to produce. Also, it has a lot to do with strawberries.
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It's kind of a bummer that we have companies that thrive on the social weaknesses of our culture, so people just buy their goods because of the hype around that brand rather than their innovation in their field or something. I don't know if this hinders our economy in some ways but just objectively it seems like it wouldn't help the invisible hand work itself out
Fire can be privatized, and it has in the past. People paid for fire insurance, or the department asked for payment after they put the fire out. Those were much more efficient than what we have today. You don’t have a right to tax people, and give them services you may think they want, and if the free market functions as well as you say it does, then you should support private fire departments.
There are movies on youtube that cost 4-23 dollars. There is almost an unlimited supply of data one could make for little cost. If there limitless supply why is the price not pennies? I was thinking that youtube has to buy the rights to a movie/show, so they make the price high so they don't lose money. Or youtube makes a percentage off a movie sale and the studio says, "we need 2$ per sale" so youtube makes the price 4$ and takes half.
The supply could be interpreted as the available places one could get the movie online. If there are thousands of places you could stream the movie from obviously the price would decrease. But if there is only one place the movie is available from they could make the price higher.
I remember learning something in math class about finding the optimal price for something by finding out how many people bought it for X price and how many bought it for Y and extrapolating to find what price would maximize profits. I think this is what they're using.
Why can't emergency services work with the market approach through included fees agreed upon by members of a homeowners association. It would make more sense to me if the emergency businesses competed with each other for contracts to service each neighborhood, the homeowners association compete for favorable renters and buyers and so ultimately the renters and buyers would be able to vote with their dollar on the cheapest, most efficient services these emergency businesses could provide. Why can't a free market operate like that for emergency services?
It has become an Internet thing to collect data about people by big companies, such as Google, where they intend to make the people transparent to take advantage of us. Greed and deception goes both ways, because it is a world of predators, not a world of saints.
Brothers Karafuchov, efficiency? economy of scale? Producing a strawberry is more expensive than producing 100 strawberries, 🤔
In demand, advertisements may make people want to buy things they don't need.
Good thing no one has ever been compelled to get a job out of dire need, but instead everyone who has ever worked has done so because they made the voluntary choice to sell their time, free of coercion.
What Whole Food store you go to that Strawberries cost $12? The Whole Food store in Coral Gables their organic Strawberries cost $7 per box. It really depends on location. I guess Florida is awesome place for fruitarians.
They didn't go into luxury goods, where a price increase will trigger more sales. These Veblen goods are being ignored. Then there is the question of subsidizing a good because of the public good. Perhaps the public ceases to eat strawberries, although we know there's a public health benefit. So by stimulating the consumption of strawberries you could be making your population more healthy. There may be a difference between what the public wants (smoking 20 cigarettes a day and flying all over the planet) and what is good for 'm in the short and long term.
You stated you won't push a political agenda, but I notice that in certain bits of this series, you just can't help being Americans. :) There is a decided bias towards the free market model.
That said, splendid series, really.
7:50 so justified economics can be disregarded so long as it's deemed unethical by an appeal to popularity/common sense (or perhaps authority)? If economists are willing to disregard economic logic for the sake of ethics, then shouldn't they present some sound ethical justification?
I think this is an excessively idealized picture of how the system works. Jacob said that if you don't like a company's practice, you can just stop buying there. But how easy is that in many cases, for a person of limited resources? If the cost of buying in other place is paying a bigger price and you are relatively poor, aren't you somewhat forced to buy anyway? Moreover, what about a worker who thinks, perhaps with good reason, that his work is undervalued (perhaps massively undervalued) in a company. Is it possible for him to just leave? Are there substantively or even absolutely better alternatives around? Is he able to start his own business without leaving his kids without food or rent unpaid? What about imperfect information and imperfect competition? Our social dynamics do not guarantee that the best products or services take over the market
The argument against a free market for organs is the same argument against a free market for drugs. Though the market isn't a perfect solution it is better than any I know of. Government regulation rarely does what it intends to and often causes other problems.
These crash courses have taught me more than what my teacher has taught me this entire year. This is one of the best examples of why schools are just useless, and a waste of time. Thanks for these videos :D
I can no longer continue. If there is anyone listening, hear this: I have a demand to end it all. Give me relief, give me a supply for my demand. OH GOD GIVE ME A SUPPLY!¡!!! PLEASE LORD END IT MAKE IT STOP
Supply and Demand is wrong. There is no reason to believe an increased price will decrease the demand. In fact in real world, an increased price would always increase the demand because more people will use that to invest since they can get more money. That is how the bubble economy happens.
Command economies objective is not to make a profit as they are of the people, by the people, for the people (democracy). Companies only objective is to make a profit and as such will take advantage of the economy and make unfair prices. With government companies you can charge the exact price of the product despite demand. This makes prices cheaper and the economy more efficient. In modern economics monopolies can form and raise extreme prices (Luxottica/diamond market). Letting demand decide pricing ruins the economy and can be extremely unfair.
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.