Assignment: Prices and Markets
This is an individual assignment where youwill submit a written report of 1500 words.
The written report requires you to perform a microeconomic analysis of an appropriate economic phenomenon from one of the two economic phenomena provided below. Choose one phenomenon. For your chosen phenomenon, conduct an economic analysis bearing in mind the purpose and remit of this course.
The word limit is 1500 words. As a suggestion, you might want to spend 300 words each on the introduction and conclusion and 900 words on the analysis. However, this may vary depending on your chosen topic and personal style.
An introduction should typically outline the phenomenon you have chosen and highlight its significance. You may present some data to illustrate the phenomenon. Good economic analysis entails identifying (1) the various aspects of the exchange process (the market, the agents involved, the equilibrium outcome), (2) the factors that can affect market outcomes over time and (3) the welfare implications of the exchange outcome and whether there is scope for government intervention. Use graphs, formulae and diagrams where they help your explanations (more rigorous and succinct) compared to words alone. A good conclusion section will provide a look at the big picture, the significance of your findings in a larger context, and even suggest limitations of the models that you have used. Remember this is an economics assignment and therefore you should refrain from writing a report that is general and/or journalistic in nature.
Submission Information and Deadline
The written report should be word-processed and provide a word count and bibliography. Note that the bibliography is not part of the word count. You can choose any bibliography style (e.g. APA, MLA, etc) as long as ALL your references are correctly formatted in the chosen style.
Phenomena to choose from (please choose one only)
1) Crude Oil Price Fluctuations between 1998-2018
Crude oil is an energy source that is integral to production processes across the economy. However, over the last two decades, crude oil prices have fluctuated quite considerably. Perform an economic analysis of this phenomenon in the market for crude oil. Explain why prices have fluctuated in the last two decades. Include in your answer the welfare implications of these price changes.
2) Green-House Gas Emissions and Climate Change
The issue of green-house gas emissions and climate change has received a lot of media attention over the last decade. While some countries have taken steps to tackle this issue, others have chosen not to respond. Perform an economic analysis of this phenomenon and its welfare implications. Include in your answer the scope of government intervention in tackling this issue.