00:01
So here the image has actually been cut off a little bit, but we can actually answer the question using the words competitive market equilibrium, right? we have price and quantity.
00:09
We have an upward sloping supply curve.
00:12
We have a downward sloping demand curve, right? and here would be my market equilibrium, right? that's where my equilibrium is.
00:22
So now we can define this, right? if we think about, say, consumer surplus, consumer surplus is the difference between value and price.
00:35
So if you say, for example, bought a good here at, say, a price of 10, and then the equilibrium price was much lower, say 2 .5, you're better off, right? you bought at 10.
00:53
Sorry, you bought at 2 .5, but it's worth 10 to you...