Question: The graph shows a decrease in supply (from S1 to S2), followed by a decrease in demand (from D1 to D2). Choose an application or situation in the economy or a specific economic situation to describe this graph. Take into consideration the impact on quantity and price in your analysis.

Given your analysis, what would cause the situation to go the opposite way? What would cause the situation to go further into the same direction?

Your paper should be double spaced, 12 Times New Roman Font, between 2-3 pages, not including a title page and reference page. It is important that your answer is justified and supported with substantial research, examples and opinion. A brief introduction and conclusion should be included in your answer.

Point Breakdown

• Interpretation of Graph

• Integration of Example

• Integration of Subjective Economic Analysis

• Integration of Research to Validate and Justify Points

• Integration of Faith/ Ethics

• Organization and Structure

• Grammar, Spelling 5 points

• Introduction and Conclusion