Use the demand and supply (D&S) model todemonstrate the change in the market conditions from 2020 to 2021 for a specific usedcarin Australia. To prepare for this task,you will do the following: draw a set of D&S curves on the one diagram, carefully labelling the curves and clearly indicate the original (2020) and new (2021) set of equilibrium prices and quantities; and provide economic reasons for the shift(s) in the curves.

• HINT: A sound answer would use values based on actual data on prices of the used vehicle; yet you can use hypothetical values (rough guesses) relying on intuition for quantities.

Suppose a year from now that inventory shortages for vehicles have been resolved. Discuss what the marketin terms of average prices and quantitiesfor used cars in Australia might look like in 2023 compared to 2021.