This is the second video in a three-part series of demand and supply videos; this video is also part of the ‘Economics Basics’ series. This video looks at demand and supply from the individual’s perspective. Key concepts such as diminishing marginal utility, choice between goods and services as well as budget optimization are covered in this video. These concepts are explained using indifference curves and budget constraints.
Consumer surplus is also revisited from the individual’s perspective. The effect diminishing marginal utility has on consumer surplus is also explained in the video. Consumers are also considered as price takers and have no influence on the price of goods and services. Equilibrium is determined when the individual’s willingness to pay equals the price of the good or service.
The video can be watched at the link below:
To fully understand this video I recommend going back and watching the first two videos in the ‘Economics Basics’ series as well as part one of this demand and supply series; see links below:
Economics Basics – Utility and Choice (Video 1)
Economics Basics – Cooperation and Specialisation (Video 2)
Demand and Supply – Part 1
If you have missed any videos in the ‘Economics Basics’ series use the link below.
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