00:01
All right, we're doing problem number 28, which is asking, how does a price ceiling set below the equilibrium level affect quantity, demand, and quantity supplied? and i've gone ahead and drawn that for you.
00:11
This is what a price ceiling set below would look like.
00:14
And as we know, a price ceiling is saying, it's a policy from the government saying, you cannot sell this good at a price higher than the ceiling.
00:26
So here's going to be our quantity supplied, and here's going to be our quantity demanded.
00:32
And the question is asking, how does it affect quantity demanded and quantity supplied? well, here was the previous quantity demanded and quantity supplied.
00:40
Quantity supplied has fallen.
00:45
Qs went down.
00:47
And quantity demanded, i'm just going to make this thing say quantity demanded...