00:01
So here we have a tax situation, right? so let's draw our market.
00:03
A market is a story about quantity and price.
00:06
We have here two demand curves, right? so we have a supply curve, we have an inelastic demand curve, and we have an elastic demand curve.
00:17
Now, in response to the tax, right? here's my tax.
00:22
We have two situations.
00:23
We started here at a quantity of 50.
00:29
And the price is 12.
00:32
The tax is 3.
00:35
And we have two points.
00:36
So this point is falling by 40%.
00:39
So if this is falling by 40%, it must be 30...