00:01
So here we are talking about equilibrium and we're given demand and supply schedules.
00:05
That is, we're given quantity demanded and quantity supplied at each price, 300, 500, 700, and 900 with quantity demand its and quantity supplied.
00:20
Now, we only have to identify three things, right? but we might as well do four.
00:30
We've got them all.
00:32
So at the price of 300, what we see is that quantity demanded is greater than quantity supplied.
00:40
This is what we call a shortage, right? or as the question says, excess demand, right? the demand is too high.
00:48
The demand is greater than the quantity supplied.
00:52
But for 500, we've got equilibrium, right? these things are equal.
00:57
We have reached equilibrium...