Question 1 Using a supply and demand model explain why the price of vegetables in Metro Manila almost doubled after Typhoon Goni hit this area in August 2015. Question 2 a. On hearing the federal government's plan to deregulate university tuition fees, the vice-chancellor of a top ranked Australian university immediately welcomes this proposal. The vice-chancellor says that his university is facing a $100 million budget deficit, and that there is a need to increase the total revenue. The vice-chancellor suggests that by raising fees by 5 per cent, total revenue will increase. Do you agree with the vice-chancellor's suggestion? What will determine whether this strategy is successful? (4 marks) b. QantasLink is the only service provider between Sydney and Toowoomba's Brisbane West Wellcamp Airport. Explain why it is unlikely for QantasLink to charge significantly high prices on this monopoly route. Also explain why it is likely that QantasLink is able to charge higher prices for business travellers than for leisure travellers. (4 marks) Question 3 In August 2015 Australian Competition and Consumer Commission (ACCC) dropped its opposition to Qantas-China Eastern alliance and approved the two airlines' cooperation on routes between Australian and China, but the competition regulator remained concerned that the pair could take the advantage of their dominant position on the Sydney-Shanghai route to raise airfares as Qantas and China Eastern Airlines together commanded a market share of more than 80 per cent on this route. Use a graph to show the potential loss in efficiency as a result of the cooperation between the two airlines. Discuss the potential benefits and costs associated with the Qantas/ China Eastern alliance.