1. Prices of houses in Darwin have been falling in recent years. It is in this context, answer the following questions:

(a) What are the major drivers of falling house prices in Darwin. [2 marks]

(b) Using an appropriate diagram, explain your answer in part (a) above.[5 marks]

(c) Is the supply of land in metropolitan cities like Melbourne, Sydney and Darwin perfectly inelastic? Why? Discuss.[3 marks]

2. Recent Coronavirus outbreak has increased the use of plastic gloves, bottles and bags.

(a) Describe the externalities that arises from the use of plastic in the face of coronavirus outbreak. Draw graphs to illustrate [7 marks].

(b) What are the best measures for governments to tackle the above externalities? [3 marks]

P. S. I have difficulty in explaining in length, expecially 2(a). Please help me with it.