00:01
So here we're giving a story about the market for lettuce.
00:03
So let's draw the market for lettuce.
00:05
That should be always your first approach.
00:07
If someone asks you about a market, draw a market.
00:11
Markets have upward sloping supply curves and downward sloping demand curves.
00:16
They have an equilibrium price.
00:18
But here, we're told that there's a shortage.
00:22
So what is a shortage? a shortage means that demand is greater than supply, right? there are too many people who want to buy and not enough people who are selling.
00:35
So this means that the price has to be low, right? the demanders really like the price.
00:43
They want a lot of it, but the suppliers don't really love the price...