00:01
What happens if we have multiple shifts of supply and demand at the same time? we will, of course, draw our quantity and price axes.
00:12
We will draw our supply and demand curves.
00:16
Now, in this example, there was a mad cow disease outbreak through the 1990s, and many people were worried about the disease and chose to stop eating beef.
00:29
So if this supply and demand curves, if these supply and demand curves represent the market for beef, then the mad cow disease outbreak and people being afraid to eat beef would have decreased the demand for beef.
00:44
We will label this shift, label the new curve, d2, and understand that it is a leftward shift in demand.
00:53
When demand decreases, it will lead to a lower price and a lower quantity.
01:03
We can see on our graph here, just that lower quantity, lower price, which leads us from this point to this point.
01:15
At the same time, the british government was trying to help alleviate mad cow disease by stopping the production of beef, or by slowing down the production of beef? well, when beef production is slowed down, that is a decrease in supply.
01:33
So we can draw that decrease in supply...