00:01
Hello, so i'm going to answer your question about the effect of decreasing the gas in the jet industry.
00:09
For doing so, i'm going to use the four steps as your exercise is required.
00:14
So the first step will be setting the initial conditions.
00:16
So i do the supply and demand curve that is here, where in the vertical access you will have the prices and the horizontal axis will have the quantities.
00:25
The initial conditions are the lines in black.
00:28
The lines in black show you that the supply have a positive relationship, which is which means that at a higher price there will be more companies willing to offer that product at the demand of a negative relationship, which means at a higher price, there will be less individuals willing to pay that price.
00:43
And the initial condition will be that you consume q0 and p0.
00:50
Then you need to identify which line changes because there is a change in the structure cost.
00:55
This will affect the supply...