Question
Read the article from the ABC news to help you answer the following questions about demand and supply. https://www.abc.net.au/news/2020-03-22/airline-industry-changed-long-term-by-coronavirus/12074680 a)Draw a clearly-labelled diagram to help
Read the article from the ABC news to help you answer the following questions about demand and supply.
https://www.abc.net.au/news/2020-03-22/airline-industry-changed-long-term-by-coronavirus/12074680
a)Draw a clearly-labelled diagram to help explain what has happened in the current market for international air travel.Be sure to explain which curve has shifted and why.(2 marks)
b)Refer back to 'Topic 2: Supply' and sketch a diagram to illustrate the situation described in the section of the article "Many airlines can't survive as they are". Be sure to illustrate what the likely price and costs are in the likely future situation and what they were recently.(3 marks)
c)Use a further diagram to illustrate the shifts to demand and supply described in the final paragraph to help explain why "The net outcome is anyone's guess" (3 marks)
d)Finally, give one example of a good that is likely to be a complement to international travel and explain the likely current situation in that market; and do the same for a likely substitute good. (2marks)
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