Question 1: Using your knowledge of income elasticity of demand, explain which industries in Australia are likely to experience a fall in demand due to the economic slow-down caused by effects of the Covid-19 virus and which industries are likely to have an increase in demand. Show this using a demand and supply graph.

Question 2: Explain the concept of price discrimination, the conditions necessary for it to be practiced, and discuss which people benefit and which people do not benefit from price discrimination.