Demand and Supply Explained Part 2 - Macro Topic 1.5 (Micro Topic 2.2)

Mr. Clifford introduces the concept of supply in economics, using dairy farming as an example. He explains the law of supply, which states that there is a direct relationship between price and quantity supplied. The video discusses the five shifters of supply: price of inputs, number of producers, technology, government involvement, and future expectations. It also covers how supply and demand interact to determine market equilibrium, and the effects of surplus and shortage on the market.

Explain the concept of surplus and how it occurs in the market.

What is a shortage and how does it resolve itself in the market?