00:01
So here we're talking about supply, right? let's remember first and foremost what a supply curve is.
00:06
Supply curve is a relationship between quantity and price that slopes upward, right? as the price rises, firms agree to supply more cars.
00:14
So here we have more firms.
00:17
That's the news story, right, that we have to explain.
00:20
So we need to think about what that does to the supply curve, right? it's obviously a function of the supply because firms, right, are the producers.
00:30
It's not d because d is thinking about the demand curve, right? the people who buy cars are the demand curve.
00:37
The supply curve is the firms who produce, right? so it's absolutely about the supply.
00:42
How do i model this? well, think about what the supply curve says...