00:01
All right, we are doing problem number 30 from chapter 3.
00:04
Problem number 30 is asking us, how does a price floor set above the equilibrium level affect quantity, demand, and quantity supplied? so let's draw a price floor.
00:15
I mean, price floor supply, demand, quantity, price.
00:25
Price floor.
00:27
Since it's saying above, right? yeah, set above the equilibrium level.
00:32
Here's our equilibrium level.
00:33
There's our floor.
00:35
How does it affect quantity demanded and quantity supplied? well, here's a new quantity demanded.
00:40
Here's a new quantity supplied.
00:41
This is our original quantity demanded and quantity supplied, this original equilibrium.
00:46
So quantity demanded has fallen...