00:01
Okay, so we can draw the graph here.
00:04
We're gonna put price against the real gdp.
00:13
Okay, so we can first draw the demand curves.
00:19
So for both ad0 and ad1, they have constant slope.
00:25
So let's draw the ad0 here.
00:30
Slope is actually negative 0 .5 for both of the ad0 and ad1.
00:45
And let's put the price 110 here.
00:50
And for ad0, it has 230.
00:56
So that's 230.
00:58
And let's say this is 130 and for ad0 it has the 190.
01:21
Okay and for ad1 at the price 110 it has 255 real gdp so and they have the same slope so the ad1 must be above the ad0 like like that, 255, and at price 130, ad1 has 215.
02:23
Okay, so mark this as ad0 and ad1.
02:28
And now we can do as0 and as1.
02:31
So they actually have an increasing slope as the price increases.
02:40
So it's not really linear.
02:42
Here...