How a supply shock can cause prices to rise and the economy to stagnate. Created by Sal Khan.
A fourth function of money is that anytime you take on a debt, when the time comes to repay it, you can use money. This is highly related to the idea of "legal tender", which you can also learn about in this video. Created by Grant Sanderson.
Why the value per share does not really get diluted when more shares are issued in a secondary offering. Created by Sal Khan.
The law of demand states that quantity demanded increases when price decreases, but why? Two reasons why the demand curve slopes downward are the substitution effect and the income effect. The income effect states that when the price of a good decreases, it is as if the buyer of the good's income went up. The substitution effect states that when the price of a good decreases, consumers will substitute away from goods that are relatively more expensive to the cheaper good. Learn about the role of the income effect and the substitution effect on the shape of the demand curve in this video.
In this video, learn about how the model of the foreign exchange market is used to represent the determination of exchange rates.
When a tax is imposed in a market this is another example of government intervention. In this video, we explore the effect of imposing a tax on the price and quantity in a market. Created by Sal Khan.
A progressive tax system is a tax in which the percentage of taxes paid (the average tax rate) increases as income increases. Income is broken down into tax brackets, and each bracket's marginal tax rate increases as you move into higher brackets. Learn how to use tax brackets to calculate income tax in this video. Created by Sal Khan.
Understanding what a tax deduction is. Created by Sal Khan.
An interesting case of taxes and tax incidence is when one of the curves is perfectly elastic. Explore what happens when demand is perfectly elastic in this video. Created by Sal Khan.
The burden of a tax falls most heavily on someone who can't adjust to a price change. That means buyers bear a bigger burden when demand is more inelastic, and sellers bear a bigger burden when supply is more inelastic. Created by Sal Khan.
How to factor in negative externalities through taxation. Created by Sal Khan.
How government can effect aggregate demand through tax policy. Created by Sal Khan.
The spending multiplier and tax multiplier will cause a $1 change in spending or taxes to lead to further changes in AD and aggregate output. The spending multiplier is always 1 greater than the tax multiplier because with taxes some of the initial impact of the tax is saved, which is not true of the spending multiplier.
Understanding an insurance company's sense of my chances of dying. Created by Sal Khan.
Why when you get your money matters as much as how much money. Present and future value also discussed. Created by Sal Khan.
An introduction to title insurance. By Sal Khan.
Just because someone lives in a house doesn't always mean that they have the right to sell that house. Learn about the role of possession, titles, and deeds in the home buying process in this video.
When a demand curve is linear, calculating consumer surplus becomes relatively simple: calculate the area of a triangle. In this video we walk through calculating consumer surplus. Created by Sal Khan.
The short-run production function describes the relationship between output and inputs when at least one input is fixed, such as out output varies based on the amount of labor used. We can use this production function to find the total product of labor, the marginal product of labor, and the average product of labor.
One of the most practical applications of price elasticity of demand is its relationship to total revenue. A seller who knows the price elasticity of demand for their good can make better decisions about what happens if they raise or lower the price of their good. Explore the relationship between total revenue and elasticity in this video. Created by Sal Khan.