00:01
Okay, so here we're talking about supply and demand of gasoline.
00:04
I'm just, i can't see figure 3 .4.
00:06
I don't know exactly what that looks like, so i'm just going to draw my own supply and demand plot.
00:12
So here we have price.
00:14
Here we have quantity.
00:17
Say this is quantity supplied, and this is quantity demanded.
00:24
And we have this equilibrium price of $1 .40? cents yes okay one dollar and forty cents so let's say this price goes up to one dollar and sixty cents what happens then so what we're going to see here is that yeah these suppliers are going to very very very happily supply that right they're they're going to be thrilled about that but what always happens no matter what is that um as price goes up quantity supplied increases, but as price gets up, quantity demanded is going to decrease.
01:12
So quantity demanded is going to be lower.
01:17
Quantity demanded is lower at $1 .60 because that's just the law of demand.
01:25
That's just the law of demand.
01:28
So then what we'll see is that there will be a, uh, uh, surplus in the market...