переведи на русский Awesome. Thanks everybody for being here. We're going to talk a little bit about supply and demand.
So when you think about supply and demand, you've all seen it in principles at some point.
When you think about supply and demand, we have the suppliers and the demanders and they meet together in the market to exchange goods and services.
And we have this kind of equilibrium price and quantity that we kind of get to when supply and demand cross.
So we have supply and demand that way. And then they interact. So we can have supply and demand shift left or right.
A right's an increase. A left's a decrease for either curve. And there's certain determinants that impact supply and demand.
So we'll have determinants of demand. That could be things like related goods or income.
And you could have expectations and on supply, you can have things like also expectations, resource prices and things like that.
So I've talked a little bit with the class so far about supply and demand. I want to get some ideas from you guys about markets that might apply supply and demand and how we could kind of look at them.
So let's start with, let's say Jen, where are some markets that you can think of?
Actually, while researching inflation, I was reminded kind of during COVID-19, there was a lot of people that were trying to work out from home and do things that they were cut off from doing.
And so I automatically think of kind of like the physical fitness market and how there was just this dramatic increase in demand for that.
And I also think of technology like Zoom or things like that that just skyrocketed during this time period.
So when you think about the physical fitness industry, do you think that'll change after COVID's kind of like seeing its course, you think it'll people go back to just kind of going to gyms or do you think it'll kind of be a lasting thing?
I think it's definitely open doors for people to be like, cool, this is something I can do at home.
But I think people do like the in-person aspect, the social aspect.
So it'll probably like slowly go down again.
But I think it's definitely open people's mind to the opportunities that they can have at home.
So kind of open up new possibilities.
Right.
So that would be an example of taste and preferences.
So you can kind of see as the COVID happened, you have this increase in taste and preferences.
So that would shift your demand for the right to the right for fitness industry stuff.
So awesome.
All right.
So let's talk to Aaron a little bit about kind of the sports industry and what's going on with that.
Yeah.
So kind of what, you know, what I like to think of in the supply and demand world is you take any professional sports league and no matter where a player goes, a very high value player gets paid a lot of money, a lot of talent on that.
You know, wherever they go, that city, that team tends to attract more fans.
And so kind of when you look at that from a supply and demand aspect, when the player, the new player comes to town that is very high talent demands a lot of money.
More people are going to want to go and watch that player.
Yeah.
So you have kind of that really successful team and a lot of people are going to want to see that.
So that would be another kind of taste and preferences things.
And we can also think about things like substitutes. So when you think about sports, there's other sports might be substitutes for things. So I know you play football. There might be substitutes like baseball or, or maybe if you're really interested in concerts, maybe concerts might be a substitute for that.
Can you any of the group think of other substitutes for for football or another sport?
I think it's a very unique type of market because when people are die hard, they definitely love their specific sport. And so that's kind of an interesting thing to think about. But yeah, definitely, I think just like other forms of entertainment or different sports kind of might be.
It just really depends on like your preferences.
Yeah.
Yeah. If you look at it with the March Madness, which is going on right now, you'll notice after the first year, I'll say don't play multiple games at the same time.
And they do that so that demand doesn't cannibalize the same supply because if they play two games at the same time, you can only watch one at a time.
Yeah.
So the broadcasting networks do that purposefully to make that the supply equal the demand even at the same time.
Yeah. So they kind of have this idea of they want to have a certain number of certain number of teams playing and they want to cut off other things.
We see that in other professional sports. We talked a little bit about it. What happens with like just different leagues scheduling?
In talking about in terms of like the broadcasting networks that have that.
They're just in general. So in general, you could think about like like when does football play?
Yeah. So yeah.
Yeah. So I mean NFL is notoriously known for having their games on Sundays, mainly.
They do have money night games, Thursday night games and occasionally a Saturday game.
But then also you take into consideration, you know, go down to college football. They're only on Saturdays.
But, you know, sports like MLB NBA, NHL, all those other professional sports. They don't have the one game a week type thing.
So they have multiple games a week and they can play on weekdays, weekends, kind of whatever. So it kind of just depends on the sport itself.
And, you know, the physicality that's needed and the rest time that's needed in between those.
But, you know, there are sports that play once a week and there are sports that play five times a week.
Yeah. Yeah. It definitely depends on the physicality and the likelihood of injury.
So I know there's only like for the George Fox football, there's only so many games in the season.
Obviously for any sport, but there's usually fewer games in football because of the risk of injury and they kind of have to be careful with that.
I would say kind of in between sports. Yeah.
We know different sports to be at different times of the year. Football is going to be that like fall kind of winter timeline.
And then basketball is kind of like winter-ish early spring and then spring training for baseball and whatnot. That all starts up again.
And so I think they kind of almost planned that in a way too to like we're going to get that demand for that period of time.
And we're not going to, you know, cross into our supplies for viewership and whatnot by like trying to all have sports all in the fall time.
Yeah. So they're almost trying to kind of restrict their supply. Later we'll talk about like oligopolies and monopolies and things.
They're almost trying to kind of keep their supply limited so that they can kind of get the most out of their fans and get the most demand for their sport.
Something else that's actually interesting related to supply and demand is the size of arenas based on the team, like around the leagues and how many games they play a week.
You know NFL teams play once a week and their stadiums have capacities upwards of 70,000. And so, you know, they're going to have a lot more supply.
And then teams or leagues such as baseball, basketball and hockey, you know, they're going to have arenas or stadiums that have, you know, between 20 and 50,000 that, you know, play multiple times a week.
Nice. Yeah. And I also think about when the the timbers were first starting out, they would use the Seahawks stadium and they actually limited the amount of seats that they would use.
So they kind of like a limit shorted and the kept like only certain amount of the stadium so they could almost restrict the supply of seats to kind of keep that kind of home like close knit feel but also make sure that they could kind of be sustainable.
So that was another application. Yeah. Are there other markets we want to talk about besides kind of the sports markets?
All right. So another aspect we might be able to look at is kind of the agricultural market. Nathan, do you want to talk a little bit about that?
Yeah. So every market where goods are sold or bought, there's going to be supply and demand forces at play.
And agriculture markets pretty common because it's a good that everyone demands. Everyone has to eat.
And so when there's negative supply chocks, shocks, meaning supply decreases, but demand stays the same because again, everyone has to eat.
We can see the greater fluctuation in price among those models. One famous and common interesting example of this is back when satellites first came out, they used satellites to take images of cornfields during droughts and during pestilence.
And based on the satellite images, they were able to guess how much of the crop yield would be to your base on how much rotted.
And they use that to buy futures contracts to profit off the difference.
Yeah. Yeah. So I think agriculture is a big one. And you can think about if you have this huge decrease in supply, right, that's going to drive up the prices for groceries and all these sorts of things.
And you can see that across all industries having this increase in price of things is detrimental to people. Right? Right.
I think also something that's worth knowing is by the year 2050, it's projected that there's going to be 9 billion people on this planet.
There's already 8 billion people. And so there's going to be 9 billion people by the year 2050.
And although supply isn't going to necessarily be decreasing at an alarming rate, the demand is going to be increasing at an alarming rate, which makes it seem like the supply is going to be decreasing that much.
Yeah. Yeah.
Economics is a dismal science, but we're reminded of Robert Malthus. I don't know if you've talked about that in your class. He predicted the same thing in 1800s.
And then the invention of tractors came along. So there's a positive to every negative. Who knows what scientists will invent to match that growth and population.
For sure. So yeah, there's definitely some economic challenges we're facing, especially with kind of growth and population and things like that. But like you said, technology can come in and kind of be the bridge that.