00:01
So here i show you the table for this question.
00:05
So we can see that this table provides at any given price, what is quantity demand and what is quantity supplies and denoted by qd and qs respectively.
00:21
So first question, the first question is to figure out what the equilibrium press and the equilibrium quantity before the price setting.
00:32
So recall, so what kind of property for the equilibrium point is that so i just draw a draft diagram.
00:44
So we know this is the demand curve and this is supply curve.
00:51
So this is the equilibrium point.
00:57
So at equilibrium point, the quantity supply will equal to quantity demand demand.
01:03
Right? so this is the equilibrium price at a $2 .8 and equilibrium quantity is $7 ,500.
01:17
And we are going to analyze what while the excess demand or the short reach, b, if the price selling is set at 2 .4, 2 .0, and 3 .6.
01:31
So at 2 .4, we can see that the quantity, the 2 .4, the quantity demand is 8 ,000...