Scenario: Consumer income falls due to a recession

1. Draw the demand and supply curves before and after the event above.

• You do NOT need to plot the demand curve exactly with actual numbers on the axes
• Make sure your demand and supply curves follow the laws of demand and supply
• Make sure you the curves and axes are appropriately labeled
• Make sure you include arrows indicating movement of curves

Clearly note the old and new equilibrium prices are quantities are clear