00:02
Once again, welcome to a new problem.
00:06
This time we're dealing with economics.
00:09
And when it comes to economics, we have demand and we have demand and supply.
00:19
So supply is pretty much connected to producers.
00:25
Or maybe supply is also connected to providers of goods and services.
00:34
And producers are among the suppliers of goods and services.
00:39
And then when it comes to demand, demand has to be connected to consumers, so people that consume goods and services.
00:50
The supply graph is upward sloping in the sense that when you look at the relationship between price and quantity, as the prices go up, producers have a preference for supplying more products so they can reap the benefits of supply.
01:13
And then you also have demand d, which is downward sloping.
01:20
Demand d, which is downward sloping.
01:26
So the price goes down.
01:31
As the prices go down, the demand goes up.
01:36
So demand increases with a reduced price, with a reduced price.
01:50
So coming back to this problem, we have a supply graph.
01:58
And one additional thing is that you have products that are substitutes.
02:06
For example, chicken and meat.
02:11
If you increase the supply of chicken, the prices of chicken might go down and that might increase the demand of chicken.
02:27
If you reduce the supply of meat, for example, the prices could go up.
02:34
If the supply of meat goes up and the prices could go up.
02:37
And if the prices go up, what's going to happen is that people are going to want to consume chicken in the place of meat...