Question

The 9/11 terrorist attacks caused the us. arine travel demand curve to shift left by an estimated 30% (no and Lee, 2005). Use a supply-and-demand diagram to show the likely effect on price and quantity (assuming that the market is competitive). Consider the market for airline travel lustrated in the figure to the right 1.) Using the line drawing tool, graph a new airline travel demand curve. Label this curve D2 2.) Using the point drawing tool, indicate the new market equilibrium price and quantity. Label this point P1 Carefully follow the instructions above, and only draw the required objects. Indicate the magnitude of the likely equilibrium price and quantity effects. For example, would you expect equilibrium quantity to change by about 30%? If the demand curve is downward sloping and the supply curve is upward sloping, then the decrease in the equilibrium quantity of airline travel will be 30%. Q, arine travel Click the graph, choose a tool in the palette and follow the instructions to create your graph.