00:01
Hello and welcome.
00:04
As most economic questions tend to be, a lot of them can be answered with logic, drawing things out physically, and just thinking about it from a pretty logical standpoint.
00:15
So we've got our standard supply and demand curves.
00:20
That was a bad graph.
00:21
There we go.
00:22
So we've got supply looking like this.
00:25
We've got demand looking like this.
00:30
We've got quantity.
00:33
Down here and we've got price over here.
00:37
So now that we've got our graphs and axes is all labeled out, let's see what the question is asking.
00:44
So the supply for products increasing and the demands remaining unchanged.
00:49
So what happens to the equilibrium price of the product? okay, got it.
00:56
So in order to evaluate this, we actually have to draw it out.
01:01
So the supply curve is increasing, but the demand curve is taking the same.
01:04
Which means the new supply curve will shift to the right, something like this...