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With three major hurricanes hitting the United States in just the span of a month gee I wonder what could be causing that we've seen the effect of fear on the economy in ways that we haven't in decades so let's take this opportunity to discuss supply demand and how panic can destroy the economy if left unchecked before we get into the nitty-gritty we're gonna need a way to visualize what we're gonna talk about which means we're gonna need to use a supply and demand graph wait hold on don't click away just yet I promise you it's not as boring as you think experiences may vary in order to set up a supply and demand graph you need to mind your P's and Q's that is price and quantity next you'll put the supply line simply known as s and in the opposite direction demand or D the D goes down yes I'm aware of the innuendo and now so are you which is why you'll never forget it and that's it we don't have to put any numbers or anything like that at least not for the purposes of this video if you really want to get into how all the numbers and stuff work might I suggest a college microeconomics course I actually really don't recommend that don't don't do that all you really have to know is that as you go this way the price goes up and as you go this way the quantity goes up so intuitively as you move this way along the supply line companies are willing to make and sell more of a product because of the higher price and obviously as you go along the demand line the lower the price the more people are willing to buy this spot right here is the important bit it's called the equiprice this is the ideal price where everything that is made is sold there's nothing left on the shelves and there are no people who want to buy it but can't as with most of the economics this is just a concept and never really happens in practice there will always be extra on the Shelf or people going home disappointed that's just life but there you go that's as in-depth as we're gonna get when it comes to supply and demand graphs I told you wouldn't be that painful another fairly simple concept that I've left out on my previous videos on economics much to the annoyance of several commenters is scarcity this is the idea that there's only a finite amount of something it's pretty simple which is why I left it out if you haven't figured this out by now my videos aren't exactly geared towards children I assume you have some sort of base knowledge coming into the but scarcity is fairly important especially when it comes to supply and demand there's only so many or so much of a product so they.