Adverse supply shock

Output, Y

Labor, N

Production function 
before the shock

Production function 
after the shock

Adverse productivity 
  shock

Change of production function due to
adverse supply shock

f = If(0 ≤ x ≤ 5, 2 * x^(0.4))
A = Point(yAxis)
B = Point(xAxis)
C = Intersect(f, xAxis, (0, 0))
a = Segment(C, A)
b = Segment(C, B)
g = If(0 ≤ x ≤ 5, 0.5 * f(x))
k = false
D: (4.5, f(4.5))
E: (4.5, g(4.5))
u = Vector(D, E)