00:01
Hi, so today we're going to deal with free issues.
00:03
First is the law of supply and demand in regards to food.
00:13
So here, the first thing you need to understand any commodity, any product can have a value when society agrees to give it some kind of value.
00:25
For instance, money as a modern term, money doesn't really have any value aside from the value that society assigns to it.
00:33
So unlike many items that are essential and food is definitely one of them, money doesn't actually have any value and yet we still attribute some value to money.
00:45
On the other hand, food, we definitely see how the law of supply and demand impacts it.
00:51
And when some food is scarce, we can see that its value is definitely lower, is definitely higher compared to some other forms of food.
01:01
Now, with b, part b of this question, we have something that is called the substitution effect.
01:10
Now, with the substitution effect, usually when you have any kind of commodity, it is relatively easy to replace it with any kind of other possible good, meaning that if, for instance, you don't wish to buy nike shoes, you simply buy adidas and you do not have any problem whatsoever.
01:27
But with food, you may have actually a problem.
01:29
For instance, if you want a substitute meat with some kind of a vegan substitute, that is a possibility...