00:01
We are going to study the different cases like perfectly inelastic supply, perfectly elastic supply or perfectly, or we can say elastic or inelastic supply.
00:11
Now in this case, what the first point is says that an increase in demand this summer for luxury cruises leads to high jump in sales price of a cabin on queen mary 2.
00:23
Now in this case, what will have seen that the supply is perfectly inelastic.
00:27
Now, in case of perfectly in elastic supply, what will happen? the supply is fixed.
00:33
We can see that supply curve, it remains at a vertical line.
00:38
So in this case, what will say? so initially the demand is shown by the demand curve d.
00:43
So, and price is p.
00:45
So this is the initial equilibrium at e.
00:47
Now, suppose the demand increases.
00:50
So that is, the demand curve will shift towards right to d1 and the price will also increase at p1 and the new equilibrium will be at e1 now in this case we can see that the supply of the q in mary i2 is fixed so we can say that's why the supply curve is shown by vertical straight line so this is the case of the perfectly in elastic supply in spite of the increase in the demand the supply has been fixed so as a result the price has increased from p to p1 so now the second part second part, what it says, the price of kilowatt of electricity, same during periods of high electricity demand as during periods of low electricity demand.
01:38
Now, this is the case of the perfectly elastic supply.
01:41
Now, in case of perfectly elastic supply, what happens? the demand changes.
01:46
So it may increase or it may decrease.
01:47
But price will remain same at the same point.
01:50
But quantity supplied will definitely change.
01:53
So it may increase or decrease as the case may be.
01:55
So in this case, suppose during the peak hours, the demand for the electricity...