00:01
So let's think about what we have here, right? we have a story about the coffee market, quantity and price.
00:07
We have a downward sloping demand curve.
00:09
I'm going to draw a flat price curve here, reflecting coffee being a perfectly competitive commodity.
00:17
So the first thing that happens is that the price of coffee, this is the market for coffee, increases.
00:24
So that increasing price does indeed move us upward along the demand.
00:30
Curve, right? we are going up this way, staying on the demand curve, right? there's nothing about the tastes for coffee changing.
00:37
We're just told the price changes.
00:39
So people react to the price.
00:41
Remember, a change in the price does not shift the demand curve.
00:44
It moves you along the demand curve.
00:46
So an upward movement along the demand curve for coffee.
00:50
That's absolutely true...