Economic Principles

Assignment

Instructions: Complete this cover sheet and attach it to your assignment. This is an individual assignment and must be your own work.
Collusion, copying or plagiarism may result in disciplinary action.

Assignment: Applying Demand and Supply Analysis to Current Issues

Part A-

Using a 2015 news item that relates to an event in a market, you are required to use the supply and demand model to explain, analyse, and discuss the event(s) and issues described in your news story.

You should comment specifically about changes to demand and supply, and price and output.

Additional concepts that you should attempt to include are:

• elasticity (e.g. price elasticity, income elasticity and cross-price elasticity)

• substitutes and complements

• short-run and long-run equilibrium

(a) The scope of concepts applied.

(b) The level of economic analysis.

(c) Conclusions and recommendations reached.

(d) Correctness of diagrams applied.

(e) Clarity of expression.

Word limit: 800 - 1000 words (excluding diagrams).

Part B-

Find a 2015 news item that is about government intervention in a market (it may be the same story used in Part A). You are required to identify the intervention being applied or suggested and the objective behind the policy. Using demand and supply analysis, suggest the impact that this policy may have on the relevant market and give an assessment of whether the policy is likely to achieve its objective.

(a) The scope of concepts applied.

(b) The level of economic analysis.

(c) Conclusions and recommendations reached.

(d) Correctness of diagrams applied.

(e) Clarity of expression.

Word limit: 800 - 1000 words (excluding diagrams).