00:01
For this question, if a virus destroys potato crops and the quantity of potato chips produced decreased by 40 million bags a week at each price, what happened to the supply of chips? according to the question, we know, there is a virus, and also the quantity of supply for potato chips would decrease at each price.
00:30
So actually, there is a decreasing supply in the potato chips for the potato chips.
00:45
In order to answer this question, we will use a graph, including demand curves, supply curve, and equilibrium to understand more what happened in this market.
00:57
So i have price, the vertical axis, and the horizontal axis is quantity of potato chips.
01:10
And also i have demandic curve and i have a splight curve in this market of potato chips.
01:17
And we know the demand curve and split curve will intersect to one point.
01:23
This point will be the equilibrium point.
01:27
I will use the blue point here.
01:30
And also, according to this equilibrium point, we will get equilibrium price and equilibrium quantity.
01:43
Now we know there is a virus happened, and the supply of potato chips will decrease...