Decrease in Government Demand for Airplanes

Quantity

(a) Private Demand

P1

P2

1,600

Q2P

Q1P

1,000

DP

D2M

D1M

1,000

(b) Government Demand

P1

P2

Q2G

1,000

Q1G

2,000

Quantity

(c) Market Demand and Supply

D2M

S

1,000

B

A

P1

P2

Q2M

2,600

Quantity

Q1M

3,000

D1M

Price

Price

Price

600

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