Problem
The 9/11 terrorist attacks caused the U.S. airline travel demand curve to shift left by an estimated 30% (Ito and Lee, 2005). Use a supply-and-demand diagram to show the likely effect on price and quantity (assuming that the market is competitive). Indicate the magnitude of the likely equilibrium price and quantity effects-for example, would you expect that equilibrium quantity changes by about 30%? Show how the answer depends on the shape and location of the supply and demand curves.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.