Once the coronavirus pandemic is over, we will return to a very different airline industry

ByVolodymyrBilotkach.Updated Sunday 22 March 2020

https://www.abc.net.au/news/2020-03-22/airline-industry-changed-long-term-by-coronavirus/12074680

a)Draw aclearly-labelleddiagram to help explainwhat has happened in thecurrentmarket forinternational air travel.Besure to explain which curve has shifted and why.(2marks)

b)Refer back to'Topic 2: Supply'and sketch a diagram to illustrate the situation described in the section of the article "Many airlines can't survive as they are".Be sure to illustrate what the likely price and costs are inthe likely futuresituationand what they were recently.(3marks)

c)Use a further diagram to illustrate the shifts to demand and supply described in the final paragraph to help explain why "The net outcome is anyone's guess"(3marks)

d)Finally,give one example of a good that is likely to be a complement to international travel and explain the likely current situation in that market; and do the same for a likely substitute good.(2marks)