00:02
So in one, we're talking about a binding price for.
00:04
Let's draw it.
00:05
A market is a story about demand and supply, price, and quantity.
00:10
The market would like to be here, right? this is the desired outcome.
00:15
But a price floor says that we are actually up here, right? the floor is setting a high price that the price cannot fall beneath.
00:24
So at the floor, we have a lot of quantity supply and very little.
00:30
Quantity demanded because of the high price.
00:32
What we have here is a surplus.
00:35
So when the price floor is removed, what's going to happen is that the market is going to move to equilibrium, right? the market is going to move to equilibrium, and that means the price will fall, right? because the price naturally wants to go to the equilibrium.
00:50
When that log gets out of the way, the price is going to change.
00:53
So that is c.
00:56
For number two, we have a tax, right? we have a tax...