00:01
So here we have a story about the supply, right? when we say supply, i'm talking about a relationship between quantity and price, right? so for a, we have input prices going down.
00:13
That means cheaper to produce.
00:17
If it's cheaper to produce, that means that for any quantity in the competitive industry, people are not going to need to charge as much, right? sorry, that's not the best straight line.
00:28
Right? the curve is shifting down, right? there's a downward decrease in supply for any quantity, a lower price is needed because the stuff going into the production is not as expensive, right? so b and c, we have taxes, right? and i assume that these taxes are on the supply side.
00:50
So let's draw them.
00:54
We have to be sort of careful.
00:56
So i want to put both b and c on the same graph for a reason.
01:00
So here's my supply curve.
01:02
So the first one is a tax of $3.
01:06
So the first curve would be s plus three, right? so for every price, the price is now actually $3 higher because the tax has increasing the total price to the consumer by $3.
01:21
But now for for c, we have an advilorum tax...