You are given the following data for equilibria in a given market for the years 2016 and 2017: 2016 P* $50/unit Q* 700 Unit , 2017 P* $20/unit Q* 700 units

You have the following possible explanations for these two data points: Decrease in Demand, Decrease in Supply, Increase in Demand, Increase in Supply, Perfectly Inelastic Demand, Perfectly Inelastic Supply

Identify THREE different pairs (e.g. Increase in Demand & Increase in Supply) that could explain this data. Show with graphs. Explain your results.

The following pairs of forces could explain this data (check the THREE pairs that work!): ____ Decrease in Demand & Decrease in Supply

____ Decrease in Demand & Perfectly Inelastic Supply

____ Increase in Demand & Decrease in Supply

____ Increase in Demand & Perfectly Inelastic Supply

____ Decrease in Supply & Perfectly Inelastic Demand

____ Increase in Supply & Perfectly Inelastic Demand

____ Increase in Supply & Decrease in Demand