00:01
Hello everyone and welcome.
00:03
So if we remember from an earlier lesson, a decrease in a factor of production leads to a increase in supply.
00:18
That does not mean quantity supplied.
00:20
That means supply.
00:22
So let's draw out our curve and see what effect this has on the equilibrium price and on the supply curve.
00:29
So we have price, and over here we've got quantity.
00:40
And of course we have to draw our curves.
00:42
So this is the first supply we have, s1, and we have demand.
00:48
So right now, this is our equilibrium point.
00:50
I'm going to write it with a green road dot.
00:52
But of course, since we decreased the price of the lithium batteries, then that's going to increase the supply.
01:05
So the supply shifts to the right.
01:07
And becomes s2.
01:14
And now all of a sudden, the equilibrium point has shifted as well...
