00:01
Let's use a graph of our market for corn to show one of these statements uses supply and demand correctly while the other one doesn't.
00:07
So let's take a look at the first statement.
00:09
So in the corn market, demand often exceeds supply, and supply sometimes exceeds demand.
00:14
Now, if we take a look at our market, this one is the one using the phrases incorrectly, right? because what they're describing here is when, say, demand exceeds supply, that's going to be a shortage, right? that's going to be the quantity demanded is going to be greater than quantity supplied.
00:37
It's not the actual curves that are shifting that are causing the shortage, right? so this may happen when, say, there's a price ceiling, right? so let's say that the government says that the price has to be below the equilibrium price.
00:51
Right.
00:51
So that would mean that the quantity demanded right here would be greater than the quantity supplied.
01:01
So it's not the actual supply and demand that are in disequilibrium, right? because there's still an equilibrium point.
01:10
It's not the actual curves, but it's the quantities along these curves that are in disagreement.
01:17
Right.
01:17
So that is an inappropriate use of supply and demand because it should be quantity demand in its supply...