00:01
Here working with some macroeconomic concepts, we want to ask ourselves why a seller might be willing to sell for less than the equilibrium price.
00:09
We know that it's true that they may indeed be willing to sell for less than equilibrium price, but to answer why, let's take a look at it graphically.
00:17
Let's quick draw a supply and demand curve.
00:21
Suppose here's our supply and here's our demand.
00:28
Right? and we know we have our quantity on our x -axis, price on the y -axis, and our equilibrium point would sit right here at make that quantity zero, and we're at price zero as well.
00:42
So looking at this, let's also take a look at what our consumer and producer surplus would be, mainly producer surplus.
00:47
We know that in a supply and demand curve market that looks like this, our producer surplus sits down here...