Using supply and demand graphs, illustrate and explain the following scenarios: a) An increase in the amount of employees retiring. b) The prices of materials used in car manufacturing deceases . c)...

1 answer below »


Using supply and demand graphs, illustrate and explain the following scenarios:





a) An increase in
the amount of
employees retiring.



b) The prices of materials used in car manufacturing
deceases.


c) The government introduces a tax on mixed alcohol drinks.


d) The effect of a decrease in income on the consumption of designer clothes


e) The effect of an increase in income on the occurrence of holidays.


f)  Genetic engineering has produced a coffee bean resistant to disease




Over recent months the Australian government has issued strong travel warnings advising Australian citizens not to travel to any country registered on the smart
traveller
list. Given that information what do you think is likely to happen in the:



1. Australian international air travel market?


2. Australian domestic holiday market?






Required:



Explain how this information will affect demand and/or supply in each of these markets.




Length: 1600 words Submission method options Alternative submission method Task Answer four (4) questions. Maximum of 400 words for each question. These are questions which require short answers to a series of issues relating to economic principles and concepts.   Question 1             [2.5 mark for each sub section; Total 15 marks]    Using supply and demand graphs, illustrate and explain the following scenarios:   a) An increase in the amount of employees retiring. b) The prices of materials used in car manufacturing deceases. c) The government introduces a tax on mixed alcohol drinks. d) The effect of a decrease in income on the consumption of designer clothes e) The effect of an increase in income on the occurrence of holidays. f)  Genetic engineering has produced a coffee bean resistant to disease     Question 2:               [2.5 marks for each sub section; Total 5 marks]   Over recent months the Australian government has issued strong travel warnings advising Australian citizens not to travel to any country registered on the smart traveller list. Given that information what do you think is likely to happen in the: 1. Australian international air travel market? 2. Australian domestic holiday market?   Required: Explain how this information will affect demand and/or supply in each of these markets. Note: you must use diagrams to support your answer.     Question 3                  [2.5 marks for each assumption; Total 5 marks] The following diagram depicts the Production Possibility Frontier for a hypothetical economy. Production possibilities frontier In this economy is it correct to assume that: a. Point C is preferable to Point D; and b. Point H would be preferable to point C. Required: Explain your response to the above assumptions.     Question 4:                 [3 marks for each sub sections; Total 12 marks] Below is the demand and supply schedule for bread in East Yeastville.   Price ($) Quantity Demanded Quantity Supplied 5.00 1,000 6,000 4.50 1,300 4,500 4.00 1,600 4,000 3.50 2,000 3,500 3.00 3,000 3,000 2.50 3,200 2,700 2.00 4,000 2,200 1.50 4,500 1,800 1.00 5,400 1,400 0.50 7,000 1,200 a) Graph the demand and supply schedule. What is the equilibrium price and quantity? b) At the price of $1, is there an excess of demand or supply? Explain your answer c) Suppose supply increases by 1,800 units at each price level, draw the new supply curve on the graph d) What will now happen to price, quantity demanded and quantity supplied? Explain your answer   Rationale The purpose of this assessment is to ensure that you have mastered the micro economic concepts and tools covered in topics 1 to 5 relating to what is economics, demand and supply, elasticity and market structures. This assessment task evaluates your progress towards achieving Learning Outcomes 1, 2 and 4: be able to apply economic concepts and principles to daily life; be able to explain the economic decision making of producers and consumers and their interaction in the market place; be able to construct graphs and diagrams to demonstrate how economic concepts and principles work in practice. Marking criteria   Learning outcome assessed Criteria HD 85%-100% DI 75%-84% CR 65%-74% PS 50%-64% FL < 50% be able to apply economic concepts and principles to daily life work applies principles of economics correctly to realistic situations. applies correct economic principles, analysis is substantiated with workings, and calculations in order to arrive at the right answer. there are negligible errors/no errors in calculations. applies correct economic principles, description is substantiated with workings, and calculations in order to arrive at the right answer. there are negligible errors/no errors in calculations. applies correct economic principles, description is substantiated with workings, and calculations in order to arrive at the right answer. there are minor errors in calculations. applies correct economic principles, shows workings and calculations but contains some errors. applies limited or no understanding of relevant principles. working and calculations are either not shown or contain major errors. be able to construct graphs and diagrams to demonstrate how economic concepts and principles work in practice use diagrams in your answers to provide a more comprehensive response. diagrams created by students are correctly and precisely labelled, relevant to the specific question, and used appropriately to demonstrate their high level understanding of all key economic concepts and principles. diagrams created by students are correctly and clearly labelled, relate to the specific questions and demonstrate a clear understanding of all key economic concepts and principles. diagrams created by students are correct with an attempt at labeling that maybe unclear/incorrect, and demonstrate an understanding of most of the key economic concepts and principles required in this task. diagrams created by students are mostly correct with an attempt at labeling, are relevant to the specific question, and demonstrate some understanding of basic economic concepts and principles. no diagrams provided or they are incorrect, poorly labelled or irrelevant to the specific question. the diagram fails to demonstrate the students understanding of economic concepts and principles. be able to explain the economic decision making of producers and consumers and their interaction in the market place work applies principles of economics correctly in discussing results, conclusions, and/or recommendations. principles are applied in the appropriate manner to arrive at the correct answer. written work shows analysis in order to interpret and make highly complexrecommendations relating to economic principles covered in this subject. principles are applied in the appropriate manner to arrive at the correct answer. written work attempts to analyse, and shows the ability to interpret and make recommendations to economic principles covered in this subject. principles are applied in the appropriate manner to arrive at the correct answer. written work shows the ability to interpret and make some key recommendations to economic principles covered in this subject. discussion reflects basic understanding of relevant principles. some inclusion of relevant recommendations. principles are not applied appropriately, correct answer is not provided. written work does not make suitable/relevant recommendations to economic principles covered in this subject. academic writing skills and referencing information, spelling, grammar and written expression is set out in a coherent manner, with professional presentation. appropriate use of font, formatting, diagrams etc., where relevant. referencing should follow the apa style, see the presentation requirements. pass sustained, consistent and logical presentation of work. accurate spelling and grammar, excellent written expression and syntax. appropriate referencing of articles and web-sites.   structure of work does not demonstrate a consistent and logical presentation format. inaccurate spelling and use of grammar, inconsistent written expression. incomplete or inaccurate referencing.   presentation the following points are a general guide for presenting assessment items. · responses to assessment items should be typed. use 1.5 spacing. · use a wide left margin. markers need space to be able to include their comments. use a standard 12pt font such as times new roman, calibri or arial. · left- justify body text. · include a separate title page with your name, student number, subject code, assessment number and assessment question. include class time and tutor’s name if applicable. number your pages (except the cover page). · use a header or footer with your name and student number on each page. · always keep a copy of your assessments. both a hard copy and an electronic copy. · most importantly, always use your spelling and grammar checker, but remember that this does not pick up all errors. you must still manually and carefully edit your work. · you need to appropriately reference all the articles, reports and web-sites you employ in developing your assignments. please use the apa style, 50%="" be="" able="" to="" apply="" economic="" concepts="" and="" principles="" to="" daily="" life="" work="" applies="" principles="" of="" economics="" correctly="" to="" realistic="" situations.="" applies="" correct="" economic="" principles,="" analysis="" is="" substantiated="" with="" workings,="" and="" calculations="" in="" order="" to="" arrive="" at="" the="" right="" answer.="" there="" are="" negligible="" errors/no="" errors="" in="" calculations.="" applies="" correct="" economic="" principles,="" description="" is="" substantiated="" with="" workings,="" and="" calculations="" in="" order="" to="" arrive="" at="" the="" right="" answer.="" there="" are="" negligible="" errors/no="" errors="" in="" calculations.="" applies="" correct="" economic="" principles,="" description="" is="" substantiated="" with="" workings,="" and="" calculations="" in="" order="" to="" arrive="" at="" the="" right="" answer.="" there="" are="" minor="" errors="" in="" calculations.="" applies="" correct="" economic="" principles,="" shows="" workings="" and="" calculations="" but="" contains="" some="" errors.="" applies="" limited="" or="" no="" understanding="" of="" relevant="" principles.="" working="" and="" calculations="" are="" either="" not="" shown="" or="" contain="" major="" errors.="" be="" able="" to="" construct="" graphs="" and="" diagrams="" to="" demonstrate="" how="" economic="" concepts="" and="" principles="" work="" in="" practice="" use="" diagrams="" in="" your="" answers="" to="" provide="" a="" more="" comprehensive="" response.="" diagrams="" created="" by="" students="" are="" correctly="" and="" precisely="" labelled,="" relevant="" to="" the="" specific="" question,="" and="" used="" appropriately="" to="" demonstrate="" their="" high="" level="" understanding="" of="" all="" key="" economic="" concepts="" and="" principles.="" diagrams="" created="" by="" students="" are="" correctly="" and="" clearly="" labelled,="" relate="" to="" the="" specific="" questions="" and="" demonstrate="" a="" clear="" understanding="" of="" all="" key="" economic="" concepts="" and="" principles.="" diagrams="" created="" by="" students="" are="" correct="" with="" an="" attempt="" at="" labeling="" that="" maybe="" unclear/incorrect,="" and="" demonstrate="" an="" understanding="" of="" most="" of="" the="" key="" economic="" concepts="" and="" principles="" required="" in="" this="" task.="" diagrams="" created="" by="" students="" are="" mostly="" correct="" with="" an="" attempt="" at="" labeling,="" are="" relevant="" to="" the="" specific="" question,="" and="" demonstrate="" some="" understanding="" of="" basic="" economic="" concepts="" and="" principles.="" no="" diagrams="" provided="" or="" they="" are="" incorrect,="" poorly="" labelled="" or="" irrelevant="" to="" the="" specific="" question.="" the="" diagram="" fails="" to="" demonstrate="" the="" students="" understanding="" of="" economic="" concepts="" and="" principles.="" be="" able="" to="" explain="" the="" economic="" decision="" making="" of="" producers="" and="" consumers="" and="" their="" interaction="" in="" the="" market="" place="" work="" applies="" principles="" of="" economics="" correctly="" in="" discussing="" results,="" conclusions,="" and/or="" recommendations.="" principles="" are="" applied="" in="" the="" appropriate="" manner="" to="" arrive="" at="" the="" correct="" answer.="" written="" work="" shows="" analysis="" in="" order="" to="" interpret="" and="" make highly="" complexrecommendations="" relating="" to="" economic="" principles="" covered="" in="" this="" subject.="" principles="" are="" applied="" in="" the="" appropriate="" manner="" to="" arrive="" at="" the="" correct="" answer.="" written="" work="" attempts="" to="" analyse,="" and="" shows="" the="" ability="" to="" interpret="" and="" make="" recommendations="" to="" economic="" principles="" covered="" in="" this="" subject.="" principles="" are="" applied="" in="" the="" appropriate="" manner="" to="" arrive="" at="" the="" correct="" answer.="" written="" work="" shows="" the="" ability="" to="" interpret="" and="" make="" some="" key="" recommendations="" to="" economic="" principles="" covered="" in="" this="" subject.="" discussion="" reflects="" basic="" understanding="" of="" relevant="" principles.="" some="" inclusion="" of="" relevant="" recommendations.="" principles="" are="" not="" applied="" appropriately,="" correct="" answer="" is="" not="" provided.="" written="" work="" does="" not="" make="" suitable/relevant="" recommendations="" to="" economic="" principles="" covered="" in="" this="" subject.="" academic="" writing="" skills="" and="" referencing="" information,="" spelling,="" grammar="" and="" written="" expression="" is="" set="" out="" in="" a="" coherent="" manner,="" with="" professional="" presentation.="" appropriate="" use="" of="" font,="" formatting,="" diagrams="" etc.,="" where="" relevant.="" referencing="" should="" follow="" the="" apa="" style,="" see="" the="" presentation="" requirements.="" pass="" sustained,="" consistent="" and="" logical="" presentation="" of="" work.="" accurate="" spelling="" and="" grammar,="" excellent="" written="" expression="" and="" syntax.="" appropriate="" referencing="" of="" articles="" and="" web-sites.=""  ="" structure="" of="" work="" does="" not="" demonstrate="" a="" consistent="" and="" logical="" presentation="" format.="" inaccurate="" spelling="" and="" use="" of="" grammar,="" inconsistent="" written="" expression.="" incomplete="" or="" inaccurate="" referencing.=""  ="" presentation="" the="" following="" points="" are="" a="" general="" guide="" for="" presenting="" assessment="" items.="" ·="" responses="" to="" assessment="" items="" should="" be="" typed.="" use="" 1.5="" spacing.="" ·="" use a="" wide="" left="" margin.="" markers="" need="" space="" to="" be="" able="" to="" include="" their="" comments.="" use="" a="" standard="" 12pt="" font="" such="" as="" times="" new="" roman,="" calibri="" or="" arial.="" ·="" left-="" justify="" body="" text.="" ·="" include="" a="" separate="" title="" page="" with="" your="" name,="" student="" number,="" subject="" code,="" assessment="" number and="" assessment="" question.="" include="" class="" time="" and="" tutor’s="" name="" if="" applicable.="" number="" your="" pages="" (except="" the="" cover="" page).="" ·="" use a="" header="" or="" footer="" with="" your="" name="" and="" student="" number="" on="" each="" page.="" ·="" always keep="" a="" copy="" of="" your="" assessments.="" both="" a="" hard="" copy="" and="" an="" electronic="" copy.="" ·="" most importantly,="" always="" use="" your="" spelling="" and="" grammar="" checker,="" but="" remember="" that="" this="" does="" not="" pick="" up="" all="" errors.="" you="" must="" still="" manually="" and="" carefully="" edit="" your="" work.="" ·="" you="" need="" to="" appropriately="" reference="" all="" the="" articles,="" reports="" and="" web-sites="" you="" employ="" in="" developing="" your="" assignments.="" please="" use="" the apa="">
Answered Same DayDec 11, 2019

Answer To: Using supply and demand graphs, illustrate and explain the following scenarios: a) An increase in...

David answered on Dec 24 2019
137 Votes
Student’s Name and Number
Student’s Name and Number        7
Student’s Name
Student number
Subject code
Assessment number
Assessment question
 Question 1             [2.5 mark for each sub section; Total 15 marks]

Using supply and demand graphs, illustrate and explain the following scenarios:
 
a) An increase in the amount of employees retir
ing.
Answer – There will be shortage of workers in the labor market as supply of the total employees will fall down. At given wage rate, fewer workers will be available for work because majority of the labor force will start retiring. As a result, there will be rise market wage rate and fall in the employment of workers. Current workers would demand higher wage rate and also the employment level will get reduced.
(
D1
) (
SS
2
) (
PRICE
)
(
P2
) (
SS
1
)
(
P1
)
(
QUANTITY
)
(
Q1
) (
Q2
)
b) The prices of materials used in car manufacturing deceases.
(
SS1
) (
PRICE
)Answer – Fall in the input prices of the good will result into rise in supply of car in the market because of which the supply curve will shift rightwards leading to rise in equilibrium quantity of car and fall in prices of car in the market. Input prices play a crucial role in determining the output prices in the market because costs of inputs is the prime factor which makes up the final price of the good in the market.
(
SS2
)
(
P1
)
(
P2
)
(
Q2
) (
Q1
) (
QUANTITY
)
c) The government introduces a tax on mixed alcohol drinks.
Answer – Introducing tax on mixed alcohol drinks will reduce the demand of mixed alcohol drinks in the market leading to downward shift of the demand curve from D1 to D2. As a result, the equilibrium quantity will fall from E1 to E2 and equilibrium price will fall from P1 to P2.
(
PRICE
)
(
SS1
) (
DD2
)
(
P1
)
(
P2
) (
DD1
)
(
Q1
) (
Q2
) (
QUANTITY
)
d) The effect of a decrease in income on the consumption of designer clothes
Answer – There is positive correlation between income level and consumption level. As income falls, the demand of designer clothes also falls down from D1 to D2 leading to reduction in price of designer clothes and equilibrium quantity consumed of such designer clothes.
(
PRICE
)
(
SS1
) (
DD2
)
(
P1
)
(
P2
) (
DD1
)
(
Q1
) (
Q2
) (
QUANTITY
)
e) The effect of an increase in income on the occurrence of holidays.
(
SS1
) (
DD2
) (
PRICE
)Answer – An increase in income will increase the expenditure of people over holidays as people would like to have more of leisure activities at higher income level. As a result, the demand curve for occurrence of holidays will shift rightwards from D1 to D2 leading to rise in prices of holiday packages and equilibrium quantity.
(
P2
)
(
Q2
) (
Q1
) (
P1
) (
QUANTITY
)
f)  Genetic engineering has produced a coffee bean resistant to disease
Answer – Production of coffee bean which are resistant to disease will increase the demand of such beans in the market leading to rightward shift of the demand curve from D1 to D2. As a result, there will be rise in equilibrium market price and quantity (Allan, 2015).
Question 2:               [2.5 marks for each sub section; Total 5 marks]
Over recent months the Australian government has issued strong travel warnings advising Australian citizens not to travel to any country registered on the smart traveller list. Given that information what do you think is likely to happen in the:
1....
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here