Question - Consider the market equilibrium for office space in the graph on the right. Then illustrate the following change in equilibrium with new supply and demand curves.
During the high-tech boom in the late 1990s, San Jose office space was in very high demand and rents were very high. With the national recession that began in 50 March 2001, however, the market for office space in San Jose (Silicon Valley) was hit very hard, and demand decreased. Assume for simplicity that no new office space was built during the period. Price ($)
Using the line drawing tool, show the result of the change in the demand and supply curves as specified above. Properly label the lines.
Carefully follow the instructions above and only draw the required objects.