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Suppose that there is a market for Christian books in California. A series of strong earthquakes...

Suppose that there is a market for Christian books in California. A series of strong earthquakes occurred in 2014, causing landslides, fires, building and roadway collapse. At the same time, a lot of people died or lost their homes. How do you think this disaster will affect the demand of Christian books in 2014? What will happen to the market equilibrium price and quantity of Christian book in 2014, as opposed to those in 2013? Discuss this using the concept of change in demand or/and supply. minimum 300 words

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As a result of a series of strong earthquakes and disruptions caused in California, the demand for Christian books will decrease, even when the price remains the same. This is because the overall income of the consumers would fall, resulting in a fall in demand. Thus, the demand curve would shift leftwards from D to D1. The new equilibrium will be attained at E1 with price falling to P1 and Quantity decreasing to Q1.

The supply curve will remain the same.

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