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3. Imagine the following polin to open up international travel for Australians to take international holidays overseas despite the pandemic. The Australian government would build

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3. Imagine the following polin to open up international travel for Australians to take international holidays overseas despite the pandemic. The Australian government would build new quarantine facilities at a xed cost of $Z and everyone taking an international holiday would have to spend 2 weeks in quarantine on return, but there would he no other restrictions on Australians taking international holidays. It would be a free market again. Assume for simplicity there is just one Australian consumer and the only two goods available are food and international holidays {prices and income are strictly positive). The price of an international holiday includes the 2 weeks in quarantine. (a) Illustrate using a 2 good indifference curve diagram(s]| funding the quarantine through taxing international holidays or taxing income. Be sure to show how both methods exactly meet the east of the quarantine facility $3. Hint: put food on the vertical axis and international holidays on the horizontal axis. Briey explain. [9 marks] {b} Is one form of tax better than the other? Explain your answer. [6 marks]

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