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- [Instructor] In this video, were gonna start talking about markets. Well start from scratch with one buyer and one seller and eventually build up to a simulation of a market with many buyers and many sellers. And then, hey, why not, well risk getting a bit political by examining the market weve built to understand some basic arguments for why markets are good on their own and some arguments for why they sometimes need intervention. Okay, in the market were going to build, the blue blobs will offer to sell, what else, rockets. And the orange blobs will buy the rockets, assuming the price is right. A seller blob places a certain value on a rocket which well show with this vertical bar. This value comes from some combination of the cost of obtaining the rocket in the first place and perhaps how much the seller would enjoy keeping the rocket for itself. It would gladly sell a rocket for a price above this value if it can, but at a price below this number, it would prefer just to k