Melbourne

1) The above shock will change both the demand and supply of houses in Melbourne, specifically:
* The supply of houses will rise as there will be more house offered due to the lack of finance of
houses’ owners. They are facing with both household debts and unemployment , thus, they need to
sell their houses to complete the leases , if not they can’t afford both living expenses and the monthly
payments at the same time.
* The demand for houses will decrease as a result of people’s lack of finance since the lockdown
policies have taken their job away, therefore, when considering economically, they may choose to
share houses with families , or rent an apartment/ a house to relieve the financial burdens.
2 ) The demand curve will shift to the left which means consumers are willing to buy houses with a
lower price at any given quantity
The supply curve will shift to the right which means at any given price , there will be more houses
offered.
3)Depending on how much each curve shift, the equilibrium price will shift in different ways .
* Demand decrease is greater than supply increase : Both the equilibrium price and quantity will be
lower.
* Demand decrease is smaller than supply increase: The equilibrium price will be lower while the
equilibrium quantity is higher.
* Demand decrease is equal to supply increase : The equilibrium price will be lower while the
equilibrium quantity remains the same .
4)If the mentioned policies are inked that means houses’ owners no longer have to face with monthly
payments , thus, they may choose to hold the properties instead of selling them and this assumption
is even more concrete when the housing market is in its downtrend , meaning sellers will gain less
money .
To conclude, the supply for houses will remain the same affected by banking policies while the
demand for houses still decreases as a result of the economic crisis due to COVID-19 outbreaks.

Petrol
2) The above shock will change both the demand and supply of houses in Melbourne, specifically:
* The supply o petrol will rise as when crude oil production is increased , the price of crude oil will be
lower ( Supply shifts the equilibrium price ) , thus, the cost of production of Petrol will decrease ( Price
of inputs), this is one of the factors affect supply curve, increasing the quantity supplied to the market
* The demand for petrol will decrease as a result of lockdowns , restrictions and concerns about
COVID-19 keeping people at home , therefore, they don’t need to use vehicles , as well as , petrol
2 ) The demand curve will shift to the left which means consumers are willing to buy petrol with a
lower price at any given quantity
The supply curve will shift to the right which means at any given price , there will be more petrol
offered.
3)Depending on how much each curve shift, the equilibrium price will shift in different ways .
* Demand decrease is greater than supply increase : Both the equilibrium price and quantity will be
lower.
* Demand decrease is smaller than supply increase: The equilibrium price will be lower while the
equilibrium quantity is higher.
* Demand decrease is equal to supply increase : The equilibrium price will be lower while the
equilibrium quantity remains the same .
3) If there was no shock to suppliers and consumers , the revenue of the mentioned station will
remain the same because there is no shift in
To conclude, the supply for houses will remain the same affected by banking policies while the
demand for houses still decreases as a result of the economic crisis due to COVID-19 outbreaks.