Question 1 (6 marks) During the COVID-19 pandemic crisis, the prices of new Toyota motor vehicles such as the RAV4, Landcruiser, Corolla, Prius Hybrid, and Camry models increased. Use the supply and demand model to explain why the price of new cars have gone up. What impact (if any) would this have on the second-hand market for these types of motor vehicles? Use the supply and demand model to explain Question 2 (6 marks) The environmental impact of air travel per passenger trip is greater than that of other transport modes. The Australian federal government's National Energy Guarantee aimed to reduce greenhouse gas emissions to meet its Paris climate change commitments. It is suggested that a carbon tax can be imposed on all domestic air travellers, which means that when a passenger purchases a ticket, they need to pay a tax for his/her trip. How would the carbon tax affect the demand for air travel? Do you think the tax will significantly reduce the amount of air travel? Use the demand and supply model and elasticity concepts to support your answer. Question 3 (8 marks) The COVID-19 pandemic has hit Australia hard and the authorities have been still debating how to rollout the COVID-19 related-vaccines safely and effectively. You are required to discuss the following a) What allocation methods have been used in Australia to decide who should get the vaccines first? Do you think these allocation methods are fair and equitable? (4 marks) b) Is it possible to leave it to the market to decide who should get the vaccines through the price mechanism if we only have a limited quantity of vaccines? c) should the vaccines be free considering their positive externalities? Discuss