00:01
So here we have a market for eggs, and we're told that the free equilibrium for eggs is at a price of $2 per dozen, right? this is the equilibrium.
00:08
It's the place where supply and demand intersect, indicating the market is imbalance, and there's no idea for anyone to change their behavior.
00:15
Now the government's going to get involved, and the government is going to set a price floor at a buck 50.
00:21
And that means a price floor says that we have to be very careful, right? is a floor says that price cannot go below, right? a floor is something you can't go below, right? can't go below.
00:44
So these prices down here are ruled out by the price floor.
00:48
The floor is the lowest price the government will allow, but the floor says you can be on top of the floor, right? you can stand on top of a floor.
00:56
You can be above a floor.
00:57
That's very easy.
00:58
So the price cannot go below 150, but this is irrelevant, right? the equilibrium price is $2...