00:01
All right, we are doing problem number 16 from chapter 3.
00:07
16.
00:11
Okay, and it's asking us, what is the relationship between quantity demanded and quantity supplied at equilibrium? what is the relationship when there is a shortage? what is a relationship when there is a surplus? so, let's draw equilibrium.
00:24
Here we go.
00:25
Supply, demand, price, quantity.
00:31
So, as you may recall, quantity.
00:34
Supplied is going to be wherever the quantity is along the supply curve where it meets the demand curve.
00:44
So the quantity supplied is going to be here.
00:49
You know, you can see it's this, right? it's that.
00:53
Quantity demanded is going to be the exact same thing.
00:55
It's going to be the quantity of whatever good that is demanded at equilibrium.
01:01
Again, that falls right here.
01:05
You see? so in a normal, equilibrium, quantity demand and quantity supplied are going to be the same thing.
01:10
So let's write q sub d equals q sub s.
01:18
Cool.
01:20
Now let's draw if there were a price ceiling.
01:27
Here's normal equilibrium.
01:30
Price quantity, supply, demand...