00:01
We're talking about demand and the golden rule of demand is to add quantities, not prices.
00:07
If i buy two and you buy three, together we bought five.
00:11
But if you buy at six and i buy at six, it does not mean that together we bought at 12.
00:16
So let's draw this diagram really carefully.
00:20
Price and quantity.
00:22
We've got two curves.
00:25
So the first one goes from 14 down to seven.
00:31
So it looks something like this.
00:33
And the second one goes from 10 down to 10.
00:40
So it would look like this.
00:43
And what we need to do is to add them at every single price.
00:48
So imagine for starters, at zero, we would begin with 17.
00:55
And at 14, we are going to have zero.
00:59
So the key thing is to notice here that up here, we only have sam.
01:09
So at these prices, jim is not willing to buy anything...