00:01
So at least in my perspective, the key to successfully answering one of these questions is to accurately represent what's going on, right? when i draw, oh, let's see if i can do a little bit better, a market is a story about quantity and price.
00:17
We have a demand and supply curve, but the current price is below the equilibrium price.
00:23
So let's suppose that this is the current price.
00:27
And now we are shifting the demand goes right.
00:31
So the demand is going right.
00:33
So i'll draw a new demand curve that looks something like this.
00:37
And i expect, therefore, the market to go to the new quantity demanded to be this point.
00:45
So before this was the shortage, right? that's the shortage, the original shortage, because this is where the difference between demand and supply.
00:55
And we can see unambiguously now that at the new, right, the new demand curve, the shortage is going to get bigger, right? it's growing...