(a)(i) YED of total airtravel marketis ", which is a luxury goods that is considered

as unnecessities.

(ii) Tragedy of commons are the negative externalities of production, meaning that the productions
of goods or services on third
impose negative impact parties such as resource deficiency, pollution.

(b) -

150%

(c) M Decarbonisation by imposing indirect could

tax be a solution to a
negative externality

e
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as indirecttax on goods with negative consumption externality increases the consumer price by the

and tax, which creates a new demand curve Deax with reduced demand from consumers due to

higher price. This shiftin demand cure more the equilibrium pointalong the supply curve,

shifting Qex. Therefore, the ad for regative externaling

QM to got closer or the
optimum,
meaning the indicttax can be a solution.

(d) Since the air travel and rail travel can

traveling oversea, imposition of indirect tax
substitute unless

on jet fuel would increase the price of the air trend, pushing the consumers to consume rail travel instead of

airtravel. However,
many
of the international air travel one oversen and take much less time than international

rail travel, providing potential to not

significantly substitute each others.