After the hurricane in the gulf coast hurts the gulf coast tourism, would there be a shift in supply,demand,?
Aug 12, 2009
in
Hurricane
or both and would there be a change in the equilibrium?
Like this post? Subscribe to my RSS feed and get loads more!
2 comments
SeriousCat ^-.-^ on August 12, 2009 at 9:27 am
ONLY THE SUPPLY CURVE SHIFTS LEFT
Demand would not be directly affected by the hurricane. Supply would decrease, as recreational facilities and the environment are destroyed. The supply curve shifts left and the quantity demanded moves along to the demand curve to meet the new, lower equilibrium (in terms of price and quantity demanded).
ChocolateCoveredGoodness on August 12, 2009 at 9:27 am
They will both drop simultaneously. Yes, there would be a new equlibrium price.
How can someone who understands economics say that the demand for tourism would not be directly affected after a city’s been ravaged by a hurricane? I would like to hear an explanation if possible, Cat.