Recently, it has become apparent that many consumers are increasingly reluctant to buy eggs due to the (mistaken) belief that the eggs could be contaminated with the avian influenza and pose a health risk to humans. Removing this group of consumers from the egg market will cause another disturbance. Your task as an analyst is to analyze the resulting changes in the market for eggs.

• Using your graph from Question 2, depict the impact of an exit by a significant number of consumers from the market for eggs. Clearly show any shifts in demand and/or supply curves that came about because of this exit. Label any shifted curves as D₂and/or S₂.
• Clearly show the new market equilibrium. Label the new equilibrium price as P₂ and equilibrium quantity transacted as Q₂.

Price Q . Quantity