Supply & Demand

All of economics is built upon three words: supply and demand. This baby basic intro concept is simple. Supply refers to how much of a thing there is, demand refers to how many people want that thing. Easy! Unless you can calculate supply and demand and chart it out on a graph, however, the idea has no application and is just a fun smart-sounding thing to say. Let's get some understanding of how supply and demand interact in a basic economic model.

Let's start with a look at the Supply Curve.

First of all, the supply curve always ascends. It may start at the vertex of quantity (Q) and price (P), or it may intersect your axes elsewhere. For sure though, the supply curve starts low on the left and rises toward the right. This indicates the increase in product quantity suppliers will sell as the market price rises. Basically, when they can get more money per unit, a company is more inclined to produce more units.

The other side of  this graph's coin is the Demand Curve.

The demand curve always descends. This is a visual demonstration of how much or little a consumer is willing to pay for any given quantity of product (Q) at any given price point (P). The less an item costs, the more a consumer is willing to buy. The more expensive a product is, the fewer consumers are willing to buy.

Simple, right? Next, let's examine how they line up and interact. Read the next blog post to learn about Market Pressures and how to calculate Market Equilibrium.

Why "Barbie Economics?"

Barbie is an icon, plain and simple. Girlfriend can do anything, has literally mastered over 200 fields of work and study, and has never been a snob for one second. Barbie's whole ethos is centered around the concept that anyone can do or be anything they want!

Personally, I've found the field of economics dense, frustrating and poorly written for the average student (though, shout-out to Khan Academy for being the lighthouse in the dark and stormy sea of entry-level econ learning). Most of the available information out there is either geared toward people that already understand the basics, or written in such fast-paced, vague and obfuscating language that we end up running in circles and struggling to keep up. Where is the hookup for those of us who learn best through step-by-step visuals and color-coded charts? I've seen only a few of these in the textbooks assigned by my professors, and they are rarely clear. It's been a nonstop uphill battle for me to keep up in my own pursuit of a degree in economics. Frustrated and confused, I have taken to drawing out my own charts and notes in cutesy bullet-journal formats. Holy crap, it has helped my comprehension so drastically! Econ is all about where visual graphing meets equation crunching. Let me help you bridge the gap where formal education seems to fall short.

Who am I to guide you? Just a fed up junior in the Environmental Econ & Policy degree path at Oregon State University. That's it. Those are my credentials. Consider me your college study buddy and let's get through this together!

Barbie Economics is designed to make the basics accessible, fun, and adorbs. Why shouldn't we have fun learning? Why shouldn't economic models and market pressure calculations come in pink? Economics students, let's Barbie this bitch.

xoxo,
Econ Barbie