Australian Federal government has introduced JobKeeper payments to tackle the rising

unemployment due to COVID-19. Loss of employment has meant a loss of income; this

means we are experiencing a decrease in individual demand by households. With

affordability now low, income elasticity of demand has been impacted. This paper requires

you to use microeconomic analysis to assess how individual demand can be improved.

Is JobKeeper effective in retaining casual employment? How is it impacting individual

demand? Do individuals have enough purchasing power to continue buying goods as

normal? Explain whether elasticity has changed. If so, how has price and income elasticity

changed? Provide evidence and use supply and demand diagrams to support your

answer.