1. Draw a graph indicating the original market for the service (i.e. with a standard demand curve, and a standard supply curve). Mark the equilibrium point as A.
2. Using the graph drawn to answer Question 3.1, indicate the change that will occur due to the government's intervention in the market. Show this by illustrating the shift in the supply curve. Mark the new equilibrium point as B.
3. Consider the effect of the change in equilibrium price on the sales forecast. How will the change in price affect the demand for the service delivered by the organisation? Is there a way to counteract the effect?