00:01
So here, the price is going to rise.
00:03
And to make this argument, let's reproduce the figure they've shown, right? so this is a story about quantity and price, right? remember, when you're looking at these graphs, read the variables that are on the axis.
00:15
Those variables are actually trying to tell you something important, right? supply, which is in green, i've even got the right colors.
00:22
And then we have this new supply, right? and then we have a downward sloping demand curve.
00:29
And that looks something like this.
00:32
And we're given this initial equilibrium, right? so initially we're at this point here, right? that's the intersection of the old supply and the demand curve.
00:43
So this is a quantity of 600 and it's a price of four.
00:48
Now, the market then moves to this new point, point one, at which point the quantity is 400 and the price is five, right? so you can see that the price is going up...