00:01
So here we're talking about a market, right? the thing that i'm a little bit confused about here is i don't know if we're supposed to analyze these changes separately or together.
00:13
It sounds like these are all together, so i'm going to try to do all these changes at the same time, and if you want to split them up into individual changes, i'll give you the tools to do it.
00:26
So the first one is more students, and more students reflects more demand, right? so we are going to have more demand for textbooks.
00:38
So that would be the first change that happens.
00:41
The second change that happens is cheaper paper, and cheaper paper is a supply factor, and it actually increases the supply of paper, right? so we get a supply shift as well.
00:57
Now we have a third factor, lower royalties, or again cheaper royalties.
01:07
Cheaper royalties also mean more supply, right? it's the same as paper.
01:12
It's a reduction in costs.
01:14
So we also have more supply, or that is the same quantity but at a lower price...