00:01
All right, i know this graph is not nearly as neat looking as what's in the textbook, but let's try to follow along and maybe look at your textbook, since that might be a little easier to see.
00:13
So right away, we can tell that the price has been set below the equilibrium, which we immediately know means we're going to have a shortage.
00:23
Okay, so we know that right off the bat.
00:25
The price should be at three cents instead.
00:28
It's at two cents, and it's been pegged there.
00:30
Okay, so we have a shortage.
00:32
Now, how do we actually get rid of that shortage? well, we do that by increasing the supply.
00:41
So if we're going to increase the supply of the thai currency, the thai central bank needs to sell more currency.
00:50
And when they do that, they put more of the currency out in the marketplace...