00:01
Hello, soutu, i'm going to answer your question about the benefit of the market, in that's what is called the total surplus.
00:08
For doing so, i'm going to use the supply and demand curve.
00:11
So in the vertical axis you can see the prices and the horizontal axis you can see the quantities.
00:16
The supply has a positive relationship, which means that a higher price there will be more companies willing to offer the product, and the demand have the opposite relationship, which means that a higher price, there will be less individuals willing to consume that good.
00:29
So, for example, in the case of the supplier, i'm just sketching line, this is the equilibrium price.
00:38
There is the demand and there are individuals that are willing to pay a higher price that are all over this area.
00:45
But due to the market, they are only paying the equilibrium price.
00:48
So in this case, the equilibrium price is pe and they were willing to pay, let's say, p1, p2 and so on.
00:55
But due to the benefit of the market, they just have to pay this price.
00:58
So all of these individuals are getting a benefit for being part of the market, for being part in the market.
01:06
The supplier have a similar interpretation...