Part I - Short Answer Questions (10%)(2%)1.If you were to estimate the potential demand for a new online market you want to operate, what methods of estimation you may use? What variables do you consider?

2.Identify three businesses that would boom post- COVID-19. What do you think about the demand for these businesses (products or services)? What is the determinant factor that drives upward the demand for these products and services? (2%)

3.What would be the impact of imposing a price floor below the equilibrium price?(2%)

4.By taking a case of Ethiopian Government involvement in price adjustment (Price Ceiling) in the recent past, answer the following questions. (Please refer sources like media (print media like newspapers or magazines, published reports and put as reference) (4 %)

a.Explain causes, the consequence, and success of the adjustment decision of government?

b.What is the effect on the price, quantity demanded of the product, and quantity supplied?

c.Why exactly does a price ceiling cause a shortage?