business economics

Question 3 Compare the impact of a recession that reduces consumer income by 10 percent on the consumption of technology goods and house rentals. Suppose that the income elasticity of demand for technology goods is 3 and the income elasticity of demand for house rentals is 0.3. Based on your response, make a policy argument to support through government funding either businesses or house rentals. Question 4 Using a supply and demand analysis show first the labour market in equilibrium, and then show a) the effect of a reduction in the demand for labour as a consequence of a pandemic. b) The effect of a government subsidy to producers to restore the employment of labour. Provide a diagram with clear axis details. Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply