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And finance Allah Shmoop what are determinants of supply and

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demand All right people we're going to follow the little

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shonka that could you know shonka is those super warm

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Russian hats with the ear flaps You have those things

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Well the journey of this little yushenko will show us

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all the ways demand curves and supply curve can shift

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and how those shifts can affect the market So there's

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this little Jew shonka that was made in a factory

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in Siberia waiting to find it's forever head to Don

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there that thing But the Russian currency the ruble took

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a tumble and the economy took a tumble with it

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When the ruble any economy took a tumble together Well

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so did people's incomes Because so many Russians had a

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change in income they were buying fewer hats Well this

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change in income made the demand for Yushchenko's go down

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which shifted the demand Kerr for Yushchenko's inward Well what

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happened when the demand Kerr for you shank has shifted

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inward Well you sh uncles are produced the supply Yeah

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that thing and sold the demand at the price and

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quantity where the two lines cross right there that little

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dot thing well when the demand curve get shifted inward

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it decreases both the price and the quantity for you

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shank a market equilibrium which is bad for you Shonka

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is trying Teo you know find there forever Heads if

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you think that's bad While things would get even more

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hopeless for the little you shonka Sorry we're just keeping

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it real here These other hats foreign hats called Beanies

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dropped in price in the Russian market when the economy

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went down And since the price of a substitute half

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rue Shankar's went down while the demand her for a

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shank has shifted even further inward Eventually the economy bounced

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back though And with it Russia was so overjoyed that

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they had a baby boom Well this change in number

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of buyers thanks to an increase in you know population

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shifted the demand Kerr for you Shank is up that

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way But not as much as our little lukashenka would

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have expected Why Well young Russians had gotten used to

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the Beanies Young Russians had a preference for Beanies over

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Yushchenko's and then another unfortunate even occurred climate change Yes

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Climate change made the Russian winters less miserably cold which

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made Yushchenko's well less useful This change in usefulness of

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Yushchenko's made the demand Kerr for Shankar's shift even further

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Inwards down down down the demand for you Shankar's went

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our poor little Lucia Anka Would it ever be sold

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Our story wouldn't be complete without looking at what happened

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to the supply curve Well guess what There used to

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be a tariff on Yushchenko's sold outside of Siberia on

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the one sold to the non Siberian parts of Russia

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The Kremlin saw the demand curve for the iconic wish

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Anca shift inward and decided to remove the shank A

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tear of right dead weight loss gone Thanks to this

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change in government policy the supply curve foryou Shankar's shifted

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outward again that way Better yet you shank a factory

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started making you Shankar Bo for rather than real fur

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to appeal to the preferences of vegetarians and vegans and

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Socialist which reduced overall production costs and for was in

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short supply anyway all because of that whole global warming

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thing and making it a whole lot more expensive and

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hard to find Well this change in production costs shifted

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this placard for Yushchenko's even further upward While that was

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good for all the little of Shankar's friends it wasn't

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necessarily good for it You know personally being a for

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you Shonka we'll still It gave the little lukashenka hope

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hope that was much needed after all those drops in

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the demand curve To try to compete with the Beanies

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you shank a factory invested in new technology which further

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shifted you shank a supply curve outward basically more hat

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making robots and fewer hat making people you know like

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what happened with car production in soon McDonald's one winter

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there was ah horrible winter storm in Russia Yes the

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most horrible of all The storm tore off many roofs

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including the shank a factory roof Our little Lou Shaka

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almost blew away But well this geographic influence caused you

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shonka supply curve to shift inward that way once the

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storm passed people who didn't have Yushchenko's while they regretted

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it you know regretted that they didn't have one resulting

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in an increase in demand for you shank as a

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symbol of Russian solidarity against the bitter cold At last

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our little lukashenka the last reel for Yushchenko was sold

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and found It's forever head The little Lou Shankar's forever

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had belonged to a young cheery Siberian boy even though

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that hat was too big a time The boy's father

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said that if he kept his ooh shonka in good

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condition he could use it until his head was big

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enough And for decades afterwards well too bad A Siberian

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monkey stole it off the boy's head just a minute

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later Yeah well happens anyway just to some five things

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that can cause a shift in demand Curves are changes

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in income price substitutes number of buyers like population growing

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or shrinking tastes and preferences for not for and usefulness

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like a zit cold out or not And for things

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that can shift the supply curve are changes in production

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costs New technology Yes Hello Robot geographic influences in taxes

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Stuff like that Like changes in government policy So remember

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when the supply and demand curves shift It changes the

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price and quantity where the two lines intersect changing the

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equilibrium and also remember Teo you know watch out for

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those Siberian monkeys Yeah they're part alien We think right

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