Question 1 (Dollars per ticket) (tickets per month) (tickets per month) 2000 3000 4000 6000 The table above shows the demand and supply of train ticket to Fukama. You are required to analyze market situation of train ticket for the government. Draw the demand and supply curves. Identify and explain the equilibrium price and quantity. (5 marks) Calculate the supply elasticity when the price increases from $1500 to $2000 and explain the implication of the result. (5 marks) As the economy grows and customers earn more income, the demand schedule of train ticket is changed as follows: Price Quantity Demanded (Dollars per ticket) (tickets per month) What is the new equilibrium price and quantity? (3 marks) Explain whether train ticket is normal good or inferior good. (4.3 marks) The Fukama Government considered that train company faced difculty in the operation, so a subsidy was provided for the company. Explain the impact on demand curve, supply curve, equilibrium price and quantity with a diagram. (10 marks) After research, it is found that the cross elasticity of demand between train ticket and air ticket is 1.25. Explain the implications in terms of economics. (6 marks)