00:01
Okay, so for this case, we have a weird case for supply curve, especially georgia grove, this is quantity, this is price.
00:09
We have a downward sloping demand curve.
00:12
Basically, it matters the highest price, the lower the quantity consumer would like to buy.
00:17
But now we have a vertical supply curve.
00:20
What do we mean by a vertical supply curve? vertical supply curve means that whatever the price is, the total quantity supplied in the market is fixed.
00:29
So in this case, it is 15 ,000.
00:33
So based on the crosspoint of supply and demand, we have the equivalent price, q -star, and the equivalent quantity, that is fixed 15 ,000.
00:44
So what's the definition of producer support? producer -suppose matters the difference of the price.
00:50
The firm actually accept, that is p -star, and the price of the market, the price of the, the price of firm, i'm sorry, producer surplus basically matters of price, the firm actually accept, that is p -star, and the price the firm is willing to accept.
01:10
So what is the price the firm is willing to accept? that's a very important question.
01:15
Actually, in this case, it should be zero, right? because the supply curve is vertical, and whatever the price is, the quantity supplied in the market is always with consult...