Answer:
The given question states that in 2017, the US lawn care services market looked like a figure, but we don't have access to the figure. However, we are told that in 2018, people's income fell significantly, leading to a drop in the market equilibrium price by 12.
To better understand the situation, let's break it down into steps:
1. In 2017, the US lawn care services market had a certain equilibrium price, which means the price at which the quantity demanded and the quantity supplied were equal.
2. However, in 2018, people's income fell significantly. This decrease in income can affect the demand for lawn care services.
3. When people have less money to spend, they may choose to spend less on non-essential services like lawn care. This decrease in demand can lead to a shift in the demand curve for lawn care services to the left.
4. As a result of the decrease in demand, the market equilibrium price drops. This means that the price at which the quantity demanded and the quantity supplied are equal has decreased.
5. The question specifically mentions that the market equilibrium price dropped by 12. Unfortunately, without the original equilibrium price, we cannot determine the exact new equilibrium price.
In summary, the decrease in people's income in 2018 led to a decrease in the demand for lawn care services, causing a drop in the market equilibrium price.