00:01
Hello, so today i'm going to answer your question for doing so i set the questions in different pieces and in different pieces and in each piece i just copy the small question or the sub question and the analysis that you need are supposed to make so the first question is concerned about the reduction of cost making computers throughout the supply and demand curve so in this case as you can see this will be the classic supply and demand curve will price is in the vertical axis and in the horizontal axis is the quantity of computers demand supply have a positive relationship which means that at more price there are more people that are willing to offer computers and the demand have the opposite relationship which means that a higher price less people is able is willing to consume computers with this reduction of the price you can see that first the prices go down also that the quantity is increased and in terms of the surplus of the producer and the consumer they increase.
01:17
So originally was this utility of the consumer, sorry, until this part, and this one was of the producer.
01:38
And with a new thing, all of this additional part go to the consumer and all of this additional part go to the producers of the computer, so there's an increase, and increase.
01:52
Increase in surplus for both agents and in quantities, prices go down.
02:12
Now the question is 40 years ago, students used typewriters to prepare for their classes.
02:17
Today they use computers.
02:19
Does these make computers and typegarious complement or substitutes? the answer will be clearly substitutes.
02:25
Use the supply and demand curve to show what happened to prices and producer in the market of typewriters.
02:30
So this is the quantity of typewriters.
02:31
And as you can imagine, the demand is going to shift to the left.
02:33
This is going to generate that the prices go down.
02:43
I make a huge reduction because it's more close to reality and also a reduction in quantity...