Question

Given what you understand about the price elasticity of demand and supply, explain how the proposed managed isolation fee legislation will affect travel decisions of New Zealanders and NZ permanent residents and how it will affect the airlines. Use suitable diagrams to illustrate your answer.

Answer 1

Price elasticity of demand and supply:

Price elasticity of demand , is the degree to which the effective desire for something changes as it's price changes . In general , People desire thing less as does things become more expensive .

• Economists use the term elasticity to denote this sensitivity to price increases .
• Price elasticity are almost always negative , Although analysts tend to ignore the sign even though this can lead to ambiguity .

The Price elasticity of supply is a measure used in economy to show the responsiveness , OR elasticity of the quantity supplied of a good OR service to a change in it's price .

  

How the proposed managed isolation fee legislation will affect travel decisions of New Zealanders and NZ permanent residents:

The COVID-19 Public Health Response Amendment Bill will provide a legal firm work to allow the Government to only charge New zealanders who enter temporarily , OR who leave New zealand after regulations come into force . Temporary visa holder's would have to pay unless they were ordinarily resident in New zealand before the boarder closure , and left before the boarder closure .

Once the regulation come into force , It is propsed New zealanders , Residents and temporary visa holder's will have to pay charges :

1 ) Any New Zealander, who either:

# leaves New Zealand after the regulations come into force # Or is visiting New Zealand for less than 90 days.

2) Any temporary visa holder, unless:

# They were ordinarily resident in New Zealand as of 19 March 2020, and
# They departed New Zealand on or before 19 March 2020, and
# They are not entering New Zealand on a border exception as a critical worker.

Propsed managed isolation fee legislation will affect travel decison of NZ permanent resident in many ways like , New zealanders who are currently over seas will not have to pay if they stay in New zealand for 90 days OR longer . If a New zealanders leave New zealand after the regulation come into for , It is propsed that you would have to pay for His/Her managed isolation unless you qualify for a waiver OR are otherwise exempt .

How it will affect the airlines:

• You can apply for a variations of travel conditions allow you to leave New zealand and return as resident if you can't meet the criteria for a perment visa just yet .
• Variations of conditions are granted based on the situation of the person who was the principal applicant when you applied for residence.
• You may need to include evidence to support your application.
• Non-principal applicants can only apply for a variation of conditions at the same time or after the principal applicant, unless a non-principal applicant exception applies. Non-principal applicants are usually granted the same travel conditions as the principal applicant.
• The time you can extend your travel conditions will depend on your situation.

Example : Two weeks of flight count data released by Airways New Zealand shows the full impact Covid-19 is having on air travel in New Zealand.

Diagrams:

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