The April 4, 2022 edition of The New York Times included an article titled "What to Know about the Bird Flu Outbreak" (it is not necessary for you to read the article; we will provide all relevant information in the questions we ask). This disease, bird flu or avian influenza, can be potentially disastrous for commercial chicken, turkey, and egg operations. According to U.S. Department of Agriculture, the 2022 outbreak was first observed in Dubois County, Indiana in early February 2022, and rapidly spread throughout multiple states. 22 million birds have already been euthanized as of early April 2022.

For Question 1, consider the market for commercially produced eggs prior to the current onset of the avian influenza. Assume that in December 2021 commercial egg markets were in a short-run equilibrium and the avian flu was neither present nor anticipated.

• Draw a graph that shows supply and demand for eggs prior to the current outbreak. This graph will serve as a starting point for your analysis in Questions 2 through 6.
• When drawing this graph, please assume that the demand curve is downward sloping and supply curve is upward sloping.
• Clearly show the market equilibrium in December 2021.
• Please remember to clearly label your axes, with P on the vertical axis and Q on the horizontal axis.
• Label the supply curve as S₀; demand curve as D₀; the equilibrium price as P₀; and equilibrium quantity as Q₀.