Piketty's two drivers of divergence. A discussion with Sal Khan.
What happens when all of the benefits of consumption are not captured in a demand curve? In this video we explore how to think about positive externalities in a market setting. Created by Sal Khan.
More choices as to when you get your money. Created by Sal Khan.
Price discrimination is when a seller can charge different customers that are basically identical different prices in an attempt to extract as much profit as possible. In this video we explore how this is possible. Created by Sal Khan.
Introduction to price elasticity of demand. Created by Sal Khan.
Explore what makes supply more or less elastic in this video.
Complements are goods that are consumed together. Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases. Take a deeper dive into how changes in the prices of complements and substitutes affect the demand curve in this video. Created by Sal Khan.
Principles of Macroeconomics for AP® Courses covers the scope and sequence for a one-semester Advance Placement Macroeconomics course. The book is on the example textbook list for the AP® course here. The text also includes many current examples, including the housing bubble and housing crisis, Zimbabwe’s hyperinflation, global unemployment, and the appointment of the United States’ first female Federal Reserve chair, Janet Yellen.
Principles of Microeconomics for AP Courses covers the scope and sequence for a one-semester Advance Placement Microeconomics course. The book is on the example textbook list for the AP course here. The text also includes many current examples, including; the Keystone Pipeline, Occupy Wall Street, and debates over the minimum wage.
Two alleged criminals have been taken into custody. Will they remain loyal, or snitch each other out? Find out in this video! Created by Sal Khan.
Producer surplus is the difference between the price a producer gets and its marginal cost. This means the producer surplus is the difference between the supply curve and the price received. Created by Sal Khan.
In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. When an economy is in a recession, it is operating inside the PPC. When it is at full employment, it operates on the PPC.
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs. In this video, we model tradeoffs and scarcity using the example of a hunter-gatherer who can split their time between two activities. Created by Sal Khan.
Learn about the profit maximization rule, and how to implement this rule in a graph of a perfectly competitive firm, in this video.
Work through a free response question about profit maximization in this video.
Market systems only function well when property rights are well defined. Take a deeper dive into the role of property rights in a market system in this video.
Does increasing the money supply impact the price level? Learn about the quantity theory of money in this video.
Nominal GDP measures output using current prices, but real GDP measures output using constant prices. In this video, we explore how price changes can distort GDP using a visual representation of GDP. Created by Sal Khan.
Thinking about how high utilization could drive price as another justification for an upward sloping short-run aggregate supply curve. Created by Sal Khan.
The real interest rate reflects the additional purchasing power gained and is based on the nominal interest rate and the rate of inflation. Learn how to find the real interest rate in this video. Created by Sal Khan.