00:01
So here the first thing we should do is draw a market.
00:03
Right? so here's my market, quantity and price, demand and supply.
00:08
Now let's go through each of these in turn until we find the right answer.
00:12
So the first one is demand up, but and supply up.
00:16
And we're looking for something that certainly leads to a lower equilibrium price.
00:21
So here, demand is increasing and supply is increasing.
00:26
So we're moving from this equilibrium, a, well, let me do that in a different color.
00:31
We're moving from this equilibrium a to this equilibrium b.
00:35
You see how these effects have mixed effects, right, on price? mixed effects on price, right? the change in demand is pushing the price up, but the change in supply is pushing the price down.
00:51
So you've got these conflicting effects on price.
00:54
One is going up.
00:55
The increase in demand is increasing the price...