Explore
For Enterprise
Join for Free
Log In

Arts et humanités
Business
Informatique
Science des données
Technologies de l'information
santé
Mathématiques et logique
Développement personnel
Sciences physiques et ingénierie
Sciences sociales
Apprentissage des langues
Diplômes
Certificats

Explorez l'intégralité de Coursera

Parcourir
Rechercher
For Enterprise
Connexion
Inscrivez-vous gratuitement

Law of Supply

Loading...

Les fondements des l'économie mondiale de l'énergie

University of Colorado System

4.6 (314 notes) | 21K étudiants inscrits

Learn about diverse and integrated markets for primary energy, and the essential considerations driving business leaders and policy makers in development of global energy resources.

Visualiser le programme de cours

Compétences que vous apprendrez

Business Analytics, Economics, Energy, Business Analysis, Strategic Analysis

Avis

4.6 (314 notes)

5 stars
204 ratings
4 stars
90 ratings
3 stars
13 ratings
2 stars
5 ratings
1 star
2 ratings

KT

Dec 16, 2016

Great introduction to the world of energy business. Provides the basic tools one needs to further analyse energy firms and markets.

TS

Feb 12, 2018

Lots of great information. The 2 case studies really help me understand how best to use the tools presented.

À partir de la leçon

Energy Supplies and Market Allocations

A broad range of primary resources are used to satisfy our need for energy. Accessing these resources depends on many factors, including available technologies and skills, and a number of political factors. We will address these factors as well as issues and trends in energy supply.

Law of Supply8:23

Determinants of Supply8:38

Enseigné par

Michael J. Orlando
Lecturer

Transcription

Now just because primary energy resources are available in various places around the

globe doesn't mean that we will necessary bring those resources to the marketplace.

So in this video, we're going to discuss determinants

of supply and as was the case with demand,

the number of factors help to determine the amount

of a resource that energy developers will bring to market.

So of course, prices provide incentives for businesses to develop these

resources, but naturally also costs are an important determinant.

So, costs maybe in the form of obvious things like the cost of labor, operating

expenses but they be maybe in less obvious ways things like weather disruptions can

be thought of as costs of production or technological change can be labor saving

or capital saving and that could be though of as a, as a impact costs.

Of course technological change can also be thought of as an impact to output.

Now it may be because I'm a bit of a finance person

but I find it useful when thinking about the supply curve

to frame it in terms essentially similar

to The way firms value perspective enterprises.

And when they value operations of perspective

enterprises, what they're really concerned with are

the free cash flows that are going to

become available from those, from those activities.

So what you can do is you can think about a statement of cash flows.

And I think it's sort of a useful a

useful instructive way for framing thinking about the supply curve.

So for example, let's say we have prices increase

okay, let's think about what, what does an increase in price

do to the statement of cash flows?

And to these 3 cash flows, which are the basis for project valuation in particular.

Well of course since your revenue is equal to your price times

quantity, and of course if price increase, the primary

effect is going to be an increase in this operating revenue.

Now, firms are going to respond to that increase in price and

possibly try to ramp up operations and take advantage of it, so

they're going to incur possibly additional costs of various types.

But the net effect of all of that is

to increase the free cash flows associated with this activity.

Okay?

And if the free cash flows associated with this activity are

increasing, then firms are going to basically expand this type of activity.

So if all firms do that, then you're going to see the supply curve go out.

Supply will increase.

Then if all firms experience an increase in free cash flows associated with that

activity, they'll be inclined to increase their

supply, their supply associated with that, this activity.

So supply will increase.

Similarly, naturally, if price falls,

then your revenue is going to fall.

So the main effect with a fallen price is to reduce the revenue associated

with that, this activity of course as with an increase in price firms are going to

respond to this change in price so it will fall in price, there response will

be possibly a cutback and economize on certain

costs associated with this now less profitable activity.

Nonetheless the net effect of this drop in price is going to be a drop in free cash

flows associated with activity, with this activity, and if

that's the case, then firms are going to reduce supply.

So as price increases, you're going to see an increase in supply.

And as price decreases, you're going to see a decrease in supply.

And we could also depict this naturally

in the form of a supply curve.

So imagine recall when last week when we talked about demand, we represented

demand by consumers for certain goods in the space of price versus quantity.

So here we're looking at price versus quantity supplied.

Imagine there's a particular price out there,

the prevailing price.

So at that prevailing price, what's going to

happen is firms are going to each decide

what's the appropriate quantity for them that maximizes

their profits associated with operations at that price.

And when you sum all that up, they're going to

produce a certain amount of output, okay?

Now you might ask, well why wouldn't they produce more?

Well think about it this way, presumably, if they were at that price anyone were

to consider producing more would require really putting an extra tax and burden

on their machinery possibly paying overtime wages,

and the margin that they're going to make

at that price, on that extra amount of production they can, they can produce with

all of those excessive costs just don't justify the excessive cost and the burden.

So they're not going to bother producing more at that price.

Similarly, why wouldn't they produce less at this price?

Well presumably at at this particular price if, if it justifies

a certain quantity, producing anything less would just leave resources idle.

It would leave capital idle, it would leave labor idle, and it

would be more profitable for them to expand output to a higher level.

So there, so that level of output associated with that price is unique.

It's just a particular level of output associated with that price.

Now on the other hand if price is increased, now it would make sense for a

firm to, say, expand its output by maybe paying overtime because the price that

they're going to get for all of those new units of production that they could expand

into are going to justify maybe putting the extra

burden on their capital and their labor resources.

And of course you can tell a similar

story If prices decline, they're going to want to economize

and pull back on those inputs on those

resources that they were, that they were just using,

because those last few workers that they had

working overtime, or the last little extra work they

tried to get out of their machines before you

know, while, while deferring maintenance, for instance, just don't,

don't justify, are no longer justified at this lower price.

So the schedule of quantities supplied at these

various prices is what we call the supply curve.

And the fact that this is an upward sloping curve, that there's a

positive relationship between price and quantity, is

what we call the law of supply.

Explorer notre catalogue

Rejoignez-nous gratuitement et obtenez des recommendations, des mises à jour et des offres personnalisées.

Coursera propose un accès universel à la meilleure formation au monde, en partenariat avec des universités et des organisations du plus haut niveau, pour proposer des cours en ligne.

© 2019 Coursera Inc. Tous droits réservés.

Télécharger dans l'App Store

Disponible sur Google Play

Coursera
À propos
Direction
Carrières
Catalogue
Certificats
Certificats MasterTrack™
Diplômes
For Enterprise
For Government

Communauté
Learners
Partners
Developers
Beta Testers
Translators

Se connecter
Blog
Facebook
LinkedIn
Twitter
Instagram
YouTube
Blog Tech

Plus
Conditions
Confidentialité
Aide
Accessibilité
Presse
Contact
Répertoire
Filiales