We are now ready for step three.
In steps one and two, we
analyzed and determined
that the demand for
minivans decreases.
Thus, it shifts left.
The supply for
minivans increases,
and thus it shifts right.
We're going to show the
shifts in a diagram that
looks like this.
Make sure you label your axis.
The vertical axis is the
price, and the horizontal axis
is the quantity.
Label your original supply as
S0 and original demand as D0.
Next, make sure that you
have labeled the equilibrium
point, which is the intersection
of supply and demand, as E0.
For now, it is not important
what this coordinates
are, such as the numbers for
the equilibrium quantity, EQ0,
or equilibrium price, EQP0.
The most important
thing is that you
have identified the equilibrium
points for the price
and quality.
