Microeconomics Econ Brief

Please answer the following question. Please use APA formatting, however please note your written response alone should be 1-2 pages doubled spaced typed (excluding title, header, name, page numbers etc.). Please create and provide at least one original graph (if you create your graph(s) on a computer using software.

Assume in a simple example that two things occur simultaneously in an economy which produces "Good X". This first thing affects consumer preferences and will decrease consumer preferences for "Good X" in the economy. The second thing is a natural disaster which causes the cost of inputs used to produce "Good X" to increase. Assume that this is a competitive market and that "Good X" is a normal good, what will happen to the equilibrium price and quantity of "Good X"? Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind what is happening and also discuss any interesting observations or outcomes. (Note: The magnitudes of any supply and/or demand shifts in this example are not specified; you may want to consider all possible scenarios).