Marginal Analysis, Roller Coasters, Elasticity, and Van Gogh: Crash Course Econ #18
Marginal Analysis, Roller Coasters, Elasticity, and Van Gogh: Crash Course Econ #18


Welcome to Crash Course Economics, I’m Jacob
Clifford. And I’m Adriene Hill. We’ve been talking a
lot about macroeconomics: GDP, unemployment, fiscal and monetary policy. That kind of thing.
Now we’re going to start talking about microeconomics. Microeconomics looks at individual markets
and the decision-making of consumers, businesses, and governments. They answer questions
like, “How many workers should we hire?” or “Is increasing minimum wage and good idea?”
and “Why is health care so expensive?” Now you might be thinking, which is more important:
micro or macro? The answer is (BOTH) micro/macro. Actually (BOTH) macro/micro. They’re both
important. [Theme Music] Let’s start with one of the most important
concepts in microeconomics: marginal analysis. For economists, the word “marginal” is pretty
much the same as “additional”. Marginal analysis looks at how individuals, businesses and governments
make decisions. Basically, they’re interested in additional benefits and additional costs. Businesses do the same thing when they decide
how many workers to hire. They compare the additional revenue that an additional worker
will likely generate for their company. And to the additional cost of hiring that worker:
wages and benefits. If hiring that worker brings in more marginal
revenue than marginal cost, then, congratulations! Someone’s got a job! This also applies in the realm of how people
feel about things. Take the development of city parks: citizens obviously get more total
satisfaction from, like, four city parks than from only three. But that doesn’t necessarily
mean that the government should build four parks. Instead, the government looks at the additional
benefit or satisfaction generated by the fourth city park and compares that to the additional
cost and here, when we’re talking about cost we’re talking about the use of city land,
and the tax money spent on building the park. If the additional benefit is higher, then
they build the park. The government keeps doing this for each additional park. The benefit
of the first park is higher than the additional benefit of the second park, and on and on. Eventually, the marginal benefit of another
park will be less than the marginal cost, so they stop building parks. Sure it’s nice to have lots of parks, but
the difference between having 200 parks and 201 parks is pretty small. This is the Law
of Diminishing Marginal Utility. By the way, when economists talk about consumers, the
word ‘utility’ means ‘satisfaction’ or happiness people get from consuming a good, or service,
or 201 parks. So you could reword this as the Law of Decreasing
Additional Satisfaction, as you consume additional amounts of anything, you’ll eventually get
less and less additional satisfaction. It’s like how the first slice of pizza or
cookie that you eat, is awesome, and the second one might be even better, but eventually, each
additional one gives you less additional enjoyment. Economists have even made up a new word to
help quantify satisfaction called ‘utils’. Utils are like happiness points and they are
completely subjective. So one person might get 100 utils of satisfaction
from the first slice of pizza and another person might only get 10 utils. So the ideas here make sense, right? But the
whole numbers thing, this ‘utils’ idea it does seem a little contrived. People don’t
actually make these calculations, do they? Yeah, they do. You don’t write them down or
think about your happiness in terms of utils, but you do likely unconsciously use marginal
analysis every day. Let’s go to the the Thought Bubble. Marginal analysis can explain all sorts of
human behaviour. Let’s say that Stan goes to an amusement park. He’s unlikely to ride
the best ride in the park, the tallest rollercoaster, over and over and over, the entire day. Why? Well even if there’s a one-time park
admission fee and the rollercoaster is free, there’s still a cost – that’s how long he
has to wait in line. So Stan estimates his marginal utility of
riding the ride and compares that to the wait. Riding the best rollercoaster might give him
the highest utility of all the rides in the park but it might not be worth waiting in
a four-hour line. A smaller ride gives him less utility but
if the line is super short, he’ll choose that one instead. Even if there’s no line for the
large super-awesome rollercoaster, he probably won’t ride it all day because eventually it
gets old. Marginal analysis explains the behaviour of
consumers like Stan, but it also explains the pricing strategies of businesses. Assume instead that the rollercoaster charges
$5 for each ride. Because Stan gets less and less utility each time, he might not be willing
to pay full price for the third ride The seller gets this, and figures it might
be better to charge Stan less for the third ride. That’s why we have deals like ‘Buy two
and get the third half off’. The point is we all use marginal analysis when we make
decisions. Thanks, Thought Bubble. So that’s marginal
analysis. Armed with our new knowledge, let’s go back and look at the most important model
in microeconomics: supply and demand, on the runway. Let’s use the market for strawberries. Remember,
the price of strawberries is on the vertical axis, and quantity is on the horizontal axis. The demand curve for strawberries is downward
sloping,showing the Law of Demand. When prices are high, people don’t wanna buy very many,
and when prices are low, people want to buy a lot. The shape of the demand curve reflects the
idea of the law of diminishing marginal utility. The first pint of strawberries you buy give
you a lot of additional utility. The second one, maybe not as much. And the
third pint, even less. If you eat ten pints, you’re gonna get sick. So, as you consume
more, you’re willing to pay less and less. This explains why the demand curve is downward
sloping and why it’s really just a marginal benefit curve. The supply curve is upward sloping representing
the Law of supply an increase in price gives producers an incentive to produce more. It turns out that supply curves are really
just marginal cost curves. It represents the additional amount of resources and energy
that each additional pint of strawberries costs. This graph explains why markets tend
to be so efficient with ours scarce resources. If strawberry producers produced too few strawberries,
the marginal benefit of the last unit will be greater than the marginal cost. That’s
the market calling out for more strawberries: “Give us strawberries, please!” If they produce too much, out here, then the
marginal cost would be greater than the marginal benefit, they’d be wasting resources on things
that consumers don’t value. Equilibrium is efficient because the marginal
benefit of the last unit consumed equals the marginal cost of that unit. The market is
making the exact amount that consumers want. This is reminiscent of an example Adam Smith
used. Why are diamond more expensive than water? Water is absolutely crucial for keeping us alive,
while diamonds do nothing except sparkle. But the price of a bottle of life-giving water is around a buck
twenty and that’s when you’re overpaying for water. The average one-carat diamond is well over
$3,000. This is called the Diamond Water Paradox, and it can be explained with marginal analysis
and the law of diminishing utility. The total utility we get from water is VERY
high, but since it’s so plentiful for most people, the marginal utility is really low.
If you can stay hydrated, cook, take showers, wash your clothes and occasionally use your
slip ‘n’ slide, then the additional satisfaction of yet another gallon of water is small. The
result is a lower price. On the other hand, diamonds are extremely
scarce because they have to be extracted from expensive, dangerous, mines. Since there are
relatively few diamonds, the additional satisfaction of another one is relatively high, so people
are willing to pay a higher price. If diamonds fell out of the sky like water,
we wouldn’t get that much additional satisfaction from them, and the price would be low. It
might seem irrational that society values diamonds more than water, but using marginal
analysis, it sort of makes sense. Relative scarcity does contribute to a product’s
value – that’s partially why Action Comics number one, the first comic book with Superman
recently sold for over for over £3m on eBay, but just because something is limited doesn’t
automatically make it valuable. There are plenty of other things that are
scarce that we don’t value as much as diamonds. For example, panda boogers. They’re super-rare,
but we don’t put them on engagement rings or pay an outrageous price for one in mint
condition. The point is, utility is subjective, and demand
depends on the tastes and preferences of consumers. That’s why there’s no market for panda boogers. Hold on, Stan tells me that, because the internet,
there does seem to be a market for panda boogers. But it’s gotta be a small one. I think the
example still holds up. Anyway, the demand also depends on the number
of substitutes. For example, strawberries have plenty of substitute goods – cherries,
raspberries, blueberries. When the price goes up for strawberries, consumers buy less because
they’ll go buy something else instead. This is a substitution effect and along with the law
of diminishing marginal utility, it helped shape the demand curve. Let’s see what this looks like in the real
world. Have you ever wondered why gas stations don’t have sales? It has to do with substitutes
and what economists call elasticity of demand. Elasticity shows how sensitive quantity is
to a change in price, when the price of gas goes up people don’t buy that much less gas because
they need it and there are few close substitutes. Now you can walk, or ride your bike, or get
an electric car but there is nothing else you can put in your current gas guzzler, this
goes the other direction too, if gas stations had sales, consumers wouldn’t buy that much
more gas. Economists would say that the demand for gasoline is relatively inelastic: a large
percent change in price leads to a small percent change in the quantity demanded. This is shown on the graph by making the demand
curve steeper, other products that have that have relatively inelastic demand include electricity,
healthcare and coffee, there’s no substitute for my five cups of coffee in the morning. And there are few products that have perfectly
inelastic demand, if the price goes up people who can afford it will always buy the same
amount, an example is insulin for diabetics because in that case they need it to live. What about the demand for pizza? Well there
are many close substitutes, I could eat a burrito or a burger, I don’t really need
pizza. So a small increase in the price could cause the price to decrease a lot, for pizza
the demand curve would be more flat, showing the demand for pizza is relatively elastic.
If a pizza place has a sale a lot of customers would buy pizza instead of other substitutes
like burgers and burritos. Now there’s also elasticity of supply. A
steep curve shows the supply is relatively inelastic, so a large change in price, leads
to a small change in quantity. Like an airplane is difficult and time consuming to build,
so even if a buyers willing to pay more for one, they’re still going to have to wait. Relatively elastic supply is when quantity
is sensitive to a change in price because producers can respond quickly, stuff like
t-shirts and strawberries. Something like the supply of Vincent Van Gogh paintings,
well that’s perfectly inelastic because when the price goes up, the quantity doesn’t
change. It doesn’t matter if people want more, Van Gogh is not going to be doing anymore
paintings. So that’s microeconomics in a nutshell,
it doesn’t focus on GDP or on unemployment, it analyses the details. It’s helpful to
understand concepts like marginal analysis and elasticity. You’re going to be using
them to make decisions anyways so you might as well understand what’s going on. Ideally
that’ll help you make better decisions. We hope the additional benefits of watching
this video was greater than the additional cost. I’d say it was at least 50 utils for
me. And not that it’s a util contest but I’d
say 55 utils. See you next week Crash Course Economics made by the help of
all these nice people. If you’re still watching the credits, your demand for this video is
just about to outstrip the supply, but you can create more supply when you support Crash
Course at Patreon, you’ll help keep Crash Course free for everyone, forever and get
great rewards. Thanks for watching and I hope you got some utils out of this.

100 thoughts on “Marginal Analysis, Roller Coasters, Elasticity, and Van Gogh: Crash Course Econ #18”

  1. ann/drew g says:

    Except diamonds are artificially scarce

  2. An American Citizen says:

    Diamonds are only expensive due to a monopoly.

  3. Ly An says:

    Hi. What do you think about the elasticity of demand for Beethoven recordings and classical music recordings? I think the first one is more elastic in theory because it's more specific, but I'm not sure

  4. TheGerogero says:

    Come to think of it, I'm surprised that panda boogers aren't valued as a traditional healing agent in China.

  5. Joanna Georges says:

    Jacob talks so fast I can't wrap my brain around the concepts quickly enough😂

  6. Lulu Pipe says:

    Some notes for y'all:
    Micro-economics looks at individual markets and the decision-making of consumers and businesses.

    Micro-economics asks questions such as "should we increase minimum wage?" or "how many workers should we hire?".

    Important aspect of Micro-economics: marginal utility
    – Marginal utility is an analysis of how businesses and consumers make decisions.
    Marginal is similar to "additional". Marginal costs = additional costs. Marginal benefits = additional benefits.

    Businesses use marginal utility when considering employment. They compare the marginal costs of hiring the worker with the benefits. If hiring the worker results in more revenue (profit) then they are employed. +$ > -$ = More revenue +$ < -$ = Loss

    – Utility means satisfaction or how much happiness is generated when humans consume goods or services
    – The Law of Diminishing Marginal Utility means that as you consume more of a good or service, the utility, or satisfaction is lowered each time.

    The Law of Diminishing Marginal Utility can be reworded as "The Law of Decreasing Additional Satisfaction".

    – Utils are units to quantify satisfaction. They are completely subjective, meaning that they are based/influenced on people's opinions.

    People use Marginal Analysis unconsciously every day.

    Demand curve sloping downwards can represent marginal benefits. Supply curve sloping upwards is marginal costs. The Equilibrium is efficient because the benefits of the goods consumed are equal to the costs. This is how markets are so good at managing scarce resources.

    – The Law of Supply is when an increase in price gives producers an incentive to produce more.
    – Substitution Effect is that as prices rise, consumers will replace more expensive goods with alternate, similar, cheaper ones.

    Diamond Water Paradox: Water's utility is VERY HIGH, crucial for life. But since it is plentiful to most people, the marginal utility is really low. Since we don't get much additional satisfaction from water, prices stay low. Diamonds on the other hand, the additional satisfaction, or marginal utility is VERY HIGH, due to its "scarcity" or the fact that diamond mining is run by monopolies.

    Relative Scarcity generally means that the more rare an item is, the higher the price. This doesn’t apply for everything though. Utility is Subjective. Demand is dependent on peoples preferences.

    Elasticity shows how sensitive quantity is to a change in price. Things that people need with little substitutes usually mean that if prices rise, people will not buy that much less of the good. Examples of goods that have a relatively inelastic demand include healthcare, coffee and fuel.
    Elasticity of demand means that goods with lots of substitutes will only be chosen if their prices are lower than their substitutes.

    There is also Elasticity of Supply. Inelasticity means that even if prices rise, the supply of goods will not change. Relatively elastic supply is when quantity is sensitive to price change because producers can respond quickly.

  7. marxsia says:

    this is my last resort before my microeconomics exams tomorrow 😢😑

  8. iateaplumandifeelweird says:

    "Diamonds are extremely scarce"
    Girl you almost made me punch my monitor.
    They are manipulating the supply (DeBeers, Monopoly), and the demand (Advertising, "Diamonds are forever").

  9. Lars DS says:

    There's plenty of diamonds in the world, but De Beers have a monopoly on them. 🙁

  10. Felix Wong says:

    "Pair'o docs"
    I see what you did there.

  11. Zedi says:

    I'm gettin oodles of utils when i'm eatin these noodles.

  12. Brick says:

    Nice belt buckle.

  13. Alexander Kostrzewa says:

    Marginal utility? LIBERAL PROPAGANDA.

  14. Quinton Shabangu says:

    I thought that marketing was also a factor. People wouldn't buy diamonds if companies did not advertise them as a woman's best friend

  15. olivejuice says:

    I love the tiny John&Sherlock in the thought bubbles btw:3
    Too bad they have got no line.

  16. Blair Carver says:

    are we not going to comment on his ACDC belt though

  17. D Tacherra says:

    hey does crash course have a lesson the invention of the internet?

  18. WeirdWorld says:

    Buy diamonds and brag how evil your are, for wanting people to feel poor.

  19. Ian Hammond says:

    im about at… uh… 30 utils right now

  20. JonatasAdoM says:

    Who else read microtransactions in the thumbnail?

  21. njack1994 says:

    Diamonds are worth so much because a smart person figured out a dumb person will pay a fortune for a rock if you correlate it to something of higher value that previously did not have tangible value like marriage.

  22. Quinn Severson says:

    who else having a nervous breakdown rn

  23. Jessica Hello says:

    Panda buggers are pretty expensive 😂

  24. Stas Pakhomov says:

    Here are some notes if you need em!

    -Microeconomics looks at individual markets and the decision making of consumers, businesses, and markets
    -Marginal Analysis = an analysis of how individuals, businesses, and government make decisions (in economics marginal = ~ additional) → additional benefits and additional costs
    -Businesses determine the additional revenue the worker would bring in contrast to the additional cost of bringing in the worker → if marginal revenue is higher than marginal cost, then the worker is needed
    -Law of diminishing marginal utility (utility = satisfaction or happiness consumers get from a good or service) → reward to Law of Decreasing Additional Satisfaction (economist made up a term called “utils” which are like subjective happiness points)
    -Demand curve on the supply & demand curve is actually the Marginal Benefit Curve while Supply curves are Marginal Cost Curves
    -Then a terrible Diamond example that refuses to acknowledge the De Beers Scam
    -Demand depends on the preferences and choices of consumers, but also on the number of substitutes
    -Substitution effect = as prices rise, consumers will replace more expensive items with less costly alternatives
    -Elasticity = shows how sensitive quantity is to a change in price
    -Elasticity of demand = how readily people are ready to jump ship to another substitute good when the price is too high → demand for gasoline (as it has no alternatives in the short run for petrol car owners) is relatively inelastic = meaning a large percent change in the price leads to a small percent change in the quantity demanded (steeper demand curve)
    -Perfectly inelastic goods (like Insulin) are goods in which a percentage change in price leads to not change in quantity demanded
    -Elasticity in supply = relatively elastic supply is things like t-shirts in which quantity produced is sensitive to change in price because producers can respond quickly
    -Perfectly inelastic supply can be used to describe expensive paintings like the Van Gogh, because even if the price goes up, Van Gogh is not going to be doing any more paintings

  25. Vishwajit Tirumurti says:

    This woman has clearly never had a pizza

  26. Greg G says:

    hey everyone talking about diamonds- calm down they mention it later in the series jesus

  27. Eric Dietz says:

    BELIEF is also a factor in the value of items. Many people pay more for something like a car not because of it's practical use but because they believe it is worth more.

  28. Tom Inalgl says:

    You should do a video about surplus-value

  29. Vinit Pratap says:

    how different is marginal cost to comparative cost?

  30. Mustafa Bilal says:

    I am taking an economic class with University of Phoenix(online). You guys are really helping me. Thanks.

  31. Heather Calun says:

    I would be way more impressed if someone proposed to me with panda boogers than with diamonds.

  32. Aaron Yu says:

    Haha, what they said about equal or lesser value of course isn't always true, but mostly tends to be true 🙂 because there are exceptions and other reasons 🙂

  33. Federico García Lorca says:

    Main outtakes of this lesson
    a. Microeconomics – Study of the economic behavior of individual units of an economy (such as a person, household, firm, or industry).
    b. Marginal analysis – An analysis of how individuals, businesses and governments make decisions.
    Marginal = Additional
    c. Utility – Satisfaction or happiness people get from consuming a good or service.
    d. Law of Diminishing Marginal Utility = Law of Decreasing Additional Satisfaction
    e. Utils – A unit used to quantify satisfaction; they are completely subjective.
    Demand curve = Marginal benefit curve
    Supply curve = Marginal cost curve
    f. Law of supply – An increase in price gives producers an incentive to produce more.
    g. Diamond-water paradox – Although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market.
    g. Substitution effect – As prices rise consumers will replace expensive items with less costly alternatives.
    h. Elasticity of demand – a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price.
    i. Elasticity of supply – a measure of the responsiveness of quantity supplied to a change in price.

  34. Anesu Chaminuka says:

    As someone about to write a test on this content, I found this video extremely useful. Thank you!

  35. Mohammed Hafiz Khan says:

    Very informative. Thank you

  36. Catriona Fung says:

    Explanations as simple as "For economists the word marginal is pretty the same as additional", helped me as an ESL to understand more than what I tried to learn/ search for in the past 10 weeks… Thanks crash course! 😂

  37. Dr. Banter says:

    dear lord… please shave their heads.

  38. Zack Bennett says:

    Adriene needs the coca

  39. Andrzej says:

    For me the benefit was -5 euro, but the perceived cost of getting out of the bed to change the video to something else was even greater 🙂

  40. Mikayla Eckel Cifrese says:

    Actually, there are way more diamonds than people think. Look up the Debear's conspiracy.

  41. ntuthuko nzama says:

    Small tip for students who are watching these videos, slow down the video speed under the you tube settings to 0.75…the information gets processed a lot better cause they are talking a bit fast….Thanks for the video though 🙂

  42. Edupe PA says:

    Excellent video! Microeconomics clear as water. Thanks

  43. Mohab Omar says:

    I miss macroeconomics already, i don't get microeconomics good enough, any advice!!

  44. Reynante Alvarez says:

    I am hoping they'll make also Crash Course ACCOUNTING. I'm begging you please! 😖

  45. Mickey Breezy says:

    Holy split ends Batman!

  46. Pratik Gore says:

    Replace diamonds with gold. Diamonds are cartels by de beers

  47. Mohamed Mahmoud says:

    100 utils

  48. Richard S. Evans says:

    Adrienne looks so high in every episode… I love it…

  49. Gianmarco Sarnelli says:

    That's the most utilitarian video of this course, take this deontologists!

  50. Esther Bei says:

    。笑。笑非常

  51. Shreyansh Das says:

    Who's Stan

  52. Grace Wooddell says:

    Adrian Hill oh my goodness! I'm a Marketplace listener and I had no idea she did this!!!!!!

  53. Meredith Koziol says:

    Panda bears or boogers?

  54. lardizabalryan1 says:

    Should governments give more subsidy to more inelastic demands? And increase taxes for elastic demands?

  55. Luis Sierra says:

    why isn't Van Gogh producing more pictures?

  56. George Bryant says:

    bit of a contradiction

  57. Munroe Saleh says:

    “There is no substitute for my 5 coffees in the morning “. Ummm Cocaine ?!

  58. Benjamin Capotosto says:

    Diamonds are not scarce!!!

  59. Scott Parker says:

    This is the crapiest vid ever

  60. OtherGuy says:

    I’d rather watch twilight

  61. Vaibhav Tripathi says:

    Most awesome in series.

  62. Weaboo Trash says:

    send utils

  63. WI M says:

    1 night before ap micro came here from acdc econ and skipped right over to Mr. Clifford's part lol

  64. joao skate says:

    why if there is 100 shoes pairs and 50 people want them the shoes cost more than if I have 20 kilos of flour and the people wants only 10?
    i think that supply and demand is not the only factor to have the price of something

  65. Trà Nguyễn says:

    This video is very useful for me. Thank CrashCourse ^^

  66. Khal Drogo says:

    except diamonds arent rare at all.

  67. علاوي الموسوي says:

    شكرا ❤

  68. Jagrati Bansal says:

    The Van Gogh in the title was bit of a clickbait.

  69. Chris Winter says:

    Geologists and industrial chemists they are not. The notion that a diamond is rare or difficult to produce is a falsehood. Apart from that, I still applaud this series. Greatly enjoy all of the episodes.

  70. rajdbzman says:

    thanks

  71. TANMAY PALKAR says:

    There's no substitute for Crash Course. Thank you so much!

  72. Dustin Miller - PolyInnovator says:

    Diamonds are artificially scare. They are the most abundant gemstone, and the diamond industry has a ton on back burner. They hold it all back to inflate the price.

  73. Nadeem Mohammed says:

    Hill & cliff 🐸

  74. hisham anan says:

    thank a lot miss Adrien and Mr Gakob and all of the people who let crash course exist

  75. Bethany Campione says:

    Anyone else see the mongol at the fair?

  76. Charles Lieberman says:

    Anyone else think she looks like Pam from the Office?

  77. jazz san says:

    Thank you so much for teaching.

  78. Rehan Jawaid says:

    This is Rehan.
    I ve just watched your video.
    I came across very very best n elaborative way of describing the microeconomics basic principles in easy n polite way.

    Thanks again

  79. Eric Whittaker says:

    I like the addition of Spock and Captain Kirk at the amusement park… Great creativity!

  80. Expert Monster says:

    well done guys! i like the way you provide the course. Please add more diagrams. Thank you!

  81. Jae Flame says:

    Squeezy Land drives a hard bargain…

  82. clarice ong says:

    "there is no substitute for my 5 cups of coffee in the morning"

    I get you girl, but tea is another substitute, milk? fruit juice?
    I get that your sleepy but coffee is not healthy for you

  83. Alexander Bourne says:

    "diamonds are scarce" south african mafia laughing secretely

  84. Man Spider says:

    I think you guys made a mistake. The pes is not determined by how steep it is but where the origin is. Every supply curve you've shown in the video is unitary elastic because it starts from the origin.

  85. Justin Wright says:

    i got negative 1000 utils out of this video

  86. Fang Muffin says:

    Crash Course Microeconomics: Diminishing marginal utility – the concept whereby the cost to build an additional resource (e.g. a park) remains the same, while it's benefit reduces with each instance if that resource (e.g. the first park in a city massively increases population happiness far more than the 53rd park).

    Me: Oh! DimRes, like in World of Warcraft – diminishing returns, where if you keep spamming glyphed faerie fire against the same target, the same silencing effect gets less and less efficient until it does basically nothing?

    Crash Course Microeconomics: I mean, I guess. You massive nerd.

    Yes yes, I'm aware CC would never use "you massive nerd" in an even remotely derisive manner. I just really love that my years of gaming are currently really helping me in my management accounting certificate. It makes me a specific kind of happy!

  87. ray1983able says:

    Marginal Analysis , Law of diminishing marginal utility , Utils – Discount deals , Law of supply , Diamond water paradox , Relative scarsity , Substitution effect , Elasticity of demand , Relativly inelastic .

  88. Jordan says:

    *me watching economic videos a few hours before my test*

  89. William Magnor says:

    There is no substitute for pizza!!!

  90. Minh Đặng says:

    8:30

  91. The LOL Minecrafter says:

    7:00
    Not to mention the fact that the diamond supply is being artificially restricted by companies. Diamonds aren't rare jewels, they're actually kind of common. Companies just make it really hard to get them.

    8:49
    Vegetable oil will work just fine with very little damage to your engine, but you'd have to be really desperate.

  92. Lars L. Christensen says:

    The term Utils is good, I would connect it with a "health index" which defines its true value

  93. andrew hughes says:

    Still waiting for them to talk about Jacobs ACDC belt. This is the most anticipated mystery of all entertainment

  94. Lorris Takouam says:

    Respect. Throw it up

  95. Momo Maximilian says:

    This video was 100 maginal utils for me! At least watching the first time. Next time probably only 80.

  96. talos1279 says:

    One of the most useful lecture learned for me today. It helps solve a lot of my questions. Thank you crash course.

  97. 이주연 says:

    What should we do when the costs=benefits?

  98. Vincent Aurelius says:

    The demand for diamonds was created through an ad campaign and the price is maintained by an artificial shortage.

  99. James Hender says:

    Show us your butt adriene

  100. Ahmes004 says:

    Ultraman at 3:41

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