Price Efficiency

And finance Allah Shmoop what are determinants of supply and

demand All right people we're going to follow the little

shonka that could you know shonka is those super warm

Russian hats with the ear flaps You have those things

Well the journey of this little yushenko will show us

all the ways demand curves and supply curve can shift

and how those shifts can affect the market So there's

this little Jew shonka that was made in a factory

in Siberia waiting to find it's forever head to Don

there that thing But the Russian currency the ruble took

a tumble and the economy took a tumble with it

When the ruble any economy took a tumble together Well

so did people's incomes Because so many Russians had a

change in income they were buying fewer hats Well this

change in income made the demand for Yushchenko's go down

which shifted the demand Kerr for Yushchenko's inward Well what

happened when the demand Kerr for you shank has shifted

inward Well you sh uncles are produced the supply Yeah

that thing and sold the demand at the price and

quantity where the two lines cross right there that little

dot thing well when the demand curve get shifted inward

it decreases both the price and the quantity for you

shank a market equilibrium which is bad for you Shonka

is trying Teo you know find there forever Heads if

you think that's bad While things would get even more

hopeless for the little you shonka Sorry we're just keeping

it real here These other hats foreign hats called Beanies

dropped in price in the Russian market when the economy

went down And since the price of a substitute half

rue Shankar's went down while the demand her for a

shank has shifted even further inward Eventually the economy bounced

back though And with it Russia was so overjoyed that

they had a baby boom Well this change in number

of buyers thanks to an increase in you know population

shifted the demand Kerr for you Shank is up that

way But not as much as our little lukashenka would

have expected Why Well young Russians had gotten used to

the Beanies Young Russians had a preference for Beanies over

Yushchenko's and then another unfortunate even occurred climate change Yes

Climate change made the Russian winters less miserably cold which

made Yushchenko's well less useful This change in usefulness of

Yushchenko's made the demand Kerr for Shankar's shift even further

Inwards down down down the demand for you Shankar's went

our poor little Lucia Anka Would it ever be sold

Our story wouldn't be complete without looking at what happened

to the supply curve Well guess what There used to

be a tariff on Yushchenko's sold outside of Siberia on

the one sold to the non Siberian parts of Russia

The Kremlin saw the demand curve for the iconic wish

Anca shift inward and decided to remove the shank A

tear of right dead weight loss gone Thanks to this

change in government policy the supply curve foryou Shankar's shifted

outward again that way Better yet you shank a factory

started making you Shankar Bo for rather than real fur

to appeal to the preferences of vegetarians and vegans and

Socialist which reduced overall production costs and for was in

short supply anyway all because of that whole global warming

thing and making it a whole lot more expensive and

hard to find Well this change in production costs shifted

this placard for Yushchenko's even further upward While that was

good for all the little of Shankar's friends it wasn't

necessarily good for it You know personally being a for

you Shonka we'll still It gave the little lukashenka hope

hope that was much needed after all those drops in

the demand curve To try to compete with the Beanies

you shank a factory invested in new technology which further

shifted you shank a supply curve outward basically more hat

making robots and fewer hat making people you know like

what happened with car production in soon McDonald's one winter

there was ah horrible winter storm in Russia Yes the

most horrible of all The storm tore off many roofs

including the shank a factory roof Our little Lou Shaka

almost blew away But well this geographic influence caused you

shonka supply curve to shift inward that way once the

storm passed people who didn't have Yushchenko's while they regretted

it you know regretted that they didn't have one resulting

in an increase in demand for you shank as a

symbol of Russian solidarity against the bitter cold At last

our little lukashenka the last reel for Yushchenko was sold

and found It's forever head The little Lou Shankar's forever

had belonged to a young cheery Siberian boy even though

that hat was too big a time The boy's father

said that if he kept his ooh shonka in good

condition he could use it until his head was big

enough And for decades afterwards well too bad A Siberian

monkey stole it off the boy's head just a minute

later Yeah well happens anyway just to some five things

that can cause a shift in demand Curves are changes

in income price substitutes number of buyers like population growing

or shrinking tastes and preferences for not for and usefulness

like a zit cold out or not And for things

that can shift the supply curve are changes in production

costs New technology Yes Hello Robot geographic influences in taxes

Stuff like that Like changes in government policy So remember

when the supply and demand curves shift It changes the

price and quantity where the two lines intersect changing the

equilibrium and also remember Teo you know watch out for

those Siberian monkeys Yeah they're part alien We think right