Suppose that households allocate their annual incomes between everyday necessities and time spent on domestic holiday...

 

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Suppose that households allocate their annual incomes between everyday necessities and time spent on domestic holiday travel (which is the only form of travel people can realistically engage in during the pandemic). Discuss and geometrically analyse (using suitable diagrams) how the COVID-19 pandemic has impacted various households by potentially altering their ability to afford these goods and thus induced them to change their choices. In doing so, identify the circumstances under which a household's uptake of domestic holiday travel might go up or go down. For simplicity, assume that there is no cap on the number of days available to them for travel purposes. In composing your answer to this question, please ensure to also adequately address the following pointers: (i) Explain and justify your assumptions about household preferences between these two types of goods. (ii) Provide a conjecture on how the ongoing pandemic might impact the prices of domestic holiday travel (estimated as cost per day of travel), everyday necessities, and the relative price of domestic holiday travel. Please support your conjecture based on some research involving credible news sources (such as mainstream news) and reference them appropriately using Harvard style of referencing. (iii) Touch upon the varying impact of the pandemic on household income - briefly mention some characteristics of households who have (a) endured a reduction in income (b) maintained the same income, and (c) benefitted with a higher income. Please support your answer through some research involving credible news sources (such as mainstream news) and reference them appropriately using Harvard style of referencing. (iv) Do an in-depth geometric analysis of the case of a household experiencing a reduction in income to tease out plausible alternative scenarios with distinct impacts on household choice depending on the severity of the income shock. Suppose that households allocate their annual incomes between everyday necessities and time spent on domestic holiday travel (which is the only form of travel people can realistically engage in during the pandemic). Discuss and geometrically analyse (using suitable diagrams) how the COVID-19 pandemic has impacted various households by potentially altering their ability to afford these goods and thus induced them to change their choices. In doing so, identify the circumstances under which a household's uptake of domestic holiday travel might go up or go down. For simplicity, assume that there is no cap on the number of days available to them for travel purposes. In composing your answer to this question, please ensure to also adequately address the following pointers: (i) Explain and justify your assumptions about household preferences between these two types of goods. (ii) Provide a conjecture on how the ongoing pandemic might impact the prices of domestic holiday travel (estimated as cost per day of travel), everyday necessities, and the relative price of domestic holiday travel. Please support your conjecture based on some research involving credible news sources (such as mainstream news) and reference them appropriately using Harvard style of referencing. (iii) Touch upon the varying impact of the pandemic on household income - briefly mention some characteristics of households who have (a) endured a reduction in income (b) maintained the same income, and (c) benefitted with a higher income. Please support your answer through some research involving credible news sources (such as mainstream news) and reference them appropriately using Harvard style of referencing. (iv) Do an in-depth geometric analysis of the case of a household experiencing a reduction in income to tease out plausible alternative scenarios with distinct impacts on household choice depending on the severity of the income shock.

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The COVID19 pandemic has affected households in various ways including their ability to afford goods such as everyday necessities and domestic holiday travel Assuming that households allocate their an... View the full answer