Problem 1) How will the following situations impact the helicopter tour business?
Using the Demand and Supply model anpredict what could happen to the demand/supply curves and to equilibrium price. Include the curves in your response.
a. The impact on the business in the event of real incomes decrease(ceteris paribus).
b. The impact on the business in the event of a decrease in fuel prices(ceteris paribus)
c. The impact on the business in the event of the adult population increase(ceteris paribus)
Problem 2) There, been a significant decrease in demand for a conventional line long distance calling service. Use a Demand/Supply model and the determinants of demand to provide answers:
a. What's the expected impact on the market equilibrium price for this product? Why?
b. Applying the demand determinants explain the causes of this shift.
Problem 3) What do you think be the predictable effect would be on the US medical drug market if the government imposed a price ceiling of $100 for a unit of a drug while the current market clearing price for this drug was $150?