00:01
Okay, so we are given a situation where these are different reservation prices, people having different reservation prices.
00:09
Why does that market demand curve slope downwards? okay, so this goes back to the simple illustration or explanation involving the law of demand.
00:21
But basically, if you have, for instance, the price and the quantity, if we'll just, just give maybe five price scenarios where you can have let's say $200, $300, $400, $600, $600.
00:44
The situation is shown here to indicate that obviously when the price is 200, you are likely to find the demand, the quantity demanded being a lot.
01:01
Higher so you'll find maybe people are demanding 30 apartments so maybe it will be used a clean shed here 30 and as the prices go increase you notice the quantities demanded will be decreasing maybe at 400 you have 26 at 500 at 24 at 622 something like that as for illustrative purposes so you will realize if you're going to plot that information on a curve right you are going to come up with something like this at 200 okay so you're likely to find 30 somewhere there and okay so we have 200 and we have 30 and we have 30 just going to be illustrative all right and the other points the 300 400 500 600 okay so these are the different prices that we have you know analysis 500 600 and then if you're going to be plotting against that okay so this is 30 you might want to be coming back here okay it's 30 say 28 26 20 24 22 okay so we have 22 24 24 20 26 you break your part on 28 so you're going to plot against this right let's see what's going to happen to the demand curve in this regard this comes up there and this comes up there...