We've learned in previous lessons that a price control decreases quantity and efficiency, but is that always the case? Learn about the surprising effect of a minimum wage on a monopsonistic labor market in this video.

In this video we expand our analysis of the prisoners' dilemma to better understand the concept and definition of a Nash Equilibrium. Created by Sal Khan.

Looking a bit deeper at why elasticity changes despite having a linear demand curve. Created by Sal Khan.

In this video, take a deeper dive into the total revenue rule and the relationship between total revenue and elasticity. Created by Sal Khan.

Taking negative externalities into account when thinking about the optimal equilibrium price and quantity. Created by Sal Khan.

Demand for normal goods increases when income increases, but demand for inferior goods decreases when income increases. In this video, we use the example of a computer and a car to describe the concepts of normal goods and inferior goods and show how a change in income affects the demand for each using a graph of the demand curve. Created by Sal Khan.

Positive statements are fact-based, but normative statements are based on opinions. In this video, learn about the distinction between positive statements and normative statements, and why economists emphasize positive analysis vs. normative analysis, as well as how to identify positive statements vs. normative statements.

Competition runs across a spectrum from perfectly competitive to monopoly, and two types of competition that lie within this spectrum are monopolistic competition and oligopolies. In this video, we briefly compare these two forms of competition. Created by Sal Khan.

When does an oligopoly act more like a perfectly competitive firm, and when does it act more like a monopolist? Find out in this video. Created by Sal Khan.

Opportunity cost is the value of something given up to obtain something else. In this video, we explore the definition of opportunity cost, how to calculate opportunity cost, and how the PPC illustrates opportunity cost. Created by Sal Khan.

In this video, we use the PPCs for two different countries that each produce two goods in order to create an output table based on the data in the graph. We then use the output table to determine the opportunity costs of producing each good. Finally, we determine which country has a comparative advantage in each good.

A rational agent considers all costs, including explicit and implicit costs, when deciding whether or not to undertake an action. In this video, learn about how opportunity costs represent the cost of the next best alternative.

Using indifference curves to think about the point on the budget line that maximizes total utility. Created by Sal Khan.

Using some basic calculus to show that marginal revenue has twice the slope of the demand curve for a monopolist. Created by Sal Khan.

The shape of a production possibility curve (PPC) reveals important information about the opportunity cost involved in producing two goods. When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing.

What would happen if we have a percentage tax instead of a fixed dollar amount. Created by Sal Khan.

The most common forms of competition you learn about in microeconomics are perfect competition, monopolies, oligopoly, monopsony, and monopolistic competition. In this video we briefly describe the key features of each.

Examining the two extremes of elasticity, perfectly elastic and perfectly inelastic demand, can help us beter understand the intuition behind this measure. Created by Sal Khan.

Planning Economics will apply microeconomic theory to issues that markets don't always handle well and so are not usually covered in a standard microeconomics course. Issues for this year include global warming, how you value a national park, the economics and politics of New York City development, how cities form and why people are willing to pay more to live in, say, the Boston Metro area, than they would pay to live in rural North Dakota, and how to evaluate costs and benefits that occur at different points in time.

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.