00:01
Here we're looking at the graph of a market of a specific drug, and we're starting off with before when there's only one company that has a patent on that drug, and they essentially have a monopoly.
00:15
Now, later on, there's going to be generic drugs that come out that are the same thing.
00:20
Instead of brand name, you know how the generics.
00:22
So what's going to happen here is supply is going to be increasing, and before they essentially have a monopoly because they're the only ones that are allowed to produce this.
00:30
So now i'm showing the entire market here.
00:33
So you're going to have supply increase as there's more people, more companies that are able to produce that drug.
00:39
So increase in supply is just a rightward shift.
00:43
And this is going to be the new supply.
00:46
So before, we have consumer surplus only being this much right here.
00:51
But after, if we look at this, we're going to the intersection and then we're going to go up into the demand line because it has to do the willingness to pay, which is exactly what the demand line illustrates...