00:01
So here we have 100 firms and we have a supply curve for each.
00:05
Price is equal to 50 minus 10 and i'm going to call that qi, qi for each.
00:10
The key thing is that market supply is the sum of the individual quantities.
00:16
You can't add them in terms of price.
00:18
You have to add them in terms of quantity, right? if i supply 20 and you supply 30, together we supply 50.
00:24
So i need to rewrite this equation in terms of qi.
00:27
So p minus 50 is equal to 10 qi.
00:32
Qi is equal to p minus 50 over 10.
00:38
So the market supply, the industry supply, is 100 outside of p minus 50 over 10 because each of these people are willing to supply the exact same amount.
00:50
And that is going to be 10p minus 500 would be equal to qs.
00:57
Rearrange, 10p is equal to qs plus 500, p is equal to qs over 10 plus 50, right? that's the key...