Solution-Question 1 explain each of the following using

Question 1 explain each of the following using supply and

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Reference no: EM13347956

Question 1 : Explain each of the following using supply and demand diagrams.

(a) When a cyclone hits Queensland, the price of bananas rises in supermarkets throughout the country.

(b) When school holidays end, the price of interstate air travel in Australia falls.

Question 2 : The Australian government administers two programs that affect the market for cigarettes. First, media campaigns and labelling requirements aimed at making public aware of the dangers of cigarette smoking. Second, there is a tax on cigarettes.

(a) With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

(b) "A tax on cigarettes is a good way of raising tax revenue for the government." Discuss.

Reference no: EM13347956

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Question 1 explain each of the following using supply and

Reference no: EM13347956

Reference no: EM13347956

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