1. Coronavirus has become a serious global threat. In this context answer the following questions:

(a)Use demand and supply diagram to show the impactof Coronavirusonthemarket of cigarettesand other types of tobacco productsAustralia.[4 marks]

(b) Use demand and supply diagram to show the impact of Coronaviruson the Australian tourism industry. Discuss the impact on price elasticityof demand. [6 marks]

(c) How is the supply of toilet paper impacted by Coronavirus? [2 marks]

2. Prices of apartments in Sydney have been falling in recent years. It is in this context, answer the following questions:

(a) What are the major drivers of falling apartment prices in Sydney. [4 marks]

(b) Using an appropriate diagram, explain your answer in part (a) above. [2 marks]

(c)Compare the trend of apartment prices with house prices in recent years. Are there any similarities or differences? [2 marks]

3. Suppose a successful vaccine for Coronavirushas been invented.

(a)Describe the externality that arises from people adopting the vaccine. Discuss. [4 marks]

(b) What will happen if 1/2 of the population of Australia refuses the use of vaccine. [4 marks]

(c) Discuss the market structure facing thepharmaceutical industry. [2 marks]