1.Suppose there is a permanent decrease in demand for buffet-style restaurants. Explain how you think this would impact profits for firms in that market in the short run, and in the long run.

2.Use the concept of externalities to explain why if left to private decisions, the usage of face masks to prevent the transmission of COVD-19 is likely to be inefficiently low.

3.Consider the individual described below. Which type of unemployment would you suggest that they most likely belong to? Explain.

An international student has just finished their economics degree at The University of Adelaide. Recruiters from government agencies where they have suitable jobs have told her that her CV makes her an excellent candidate for theirgraduate programs, howevershe is not eligible for them because she does not have Permanent Residency. She will keep looking for a job in Adelaide at a private sector firm, but is worried that it may be difficult to find one during the current COVID-19 economic crisis.