Page 2 of 3 O Question 2 - Using the diagram below, indicate the effect of a government subsidy on the production of commercial aircraft on the market for commercial aircraft. Draw in the new Demand or Supply line (using whatever method you developed week one), clearly indicate the original market price and quantity on the vertical and horizontal axes respectively, and then clearly indicate the new market price and quantity on the same axes. S X D Qty Question 3 - The price of Caribbean cruise vacations increases while the number of bookings decreases. a) Is this due to a change in Supply or Demand? Answer by shifting the correct line below in the diagram and then showing the corresponding changes in Price and Sales. b) Finally, provide a creative scenario to explain why this change took place. (Please don't simply state which curve shifted which way - that's uncreative.) DII PrtSon Home End F3 F4 FS F6 F7 F8 19