Answer all four (4) questions. Maximum of 500 words for each question. You need:
- Apply economic concepts and principles to daily life for the answers.
- Construct graphs and diagrams to demonstrate how economic concepts and principles work in practice
- Explain the economic decision making of producers and consumers and their interaction in the market place
1. Describe and discuss the specific demand determinants for University education in Australia by
You will need to demonstrate an understanding of the basic things with influence demand from the subject materials. You will also need to do some research on the specific type of demand for University education in Australia by international students. For research just use some key phases in Goggle Scholar. You should be able to found some relevant articles. Make sure they are specific to Australian international students. An example article is: Min, B.S. and Falvey, R. (2018) International student flows for university education and the bilateral market integration of Australia. Higher Education, 75(5): 871-889. You may find others also. Try to read and then summarise these articles to identify the things that determine the demand for University education in Australia by international students.
2. Use the economics or other literature (but not the textbook) to identify estimates of the price elasticity of demand for at least three different products or services. The estimates must be from three different articles with a publication date of 2017 or 2018. Provide full citations for the employed literature. Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand.
From the subject’s materials you need to demonstrate an understating of the things which determine the size or magnitude of the price elasticity of demand. Again use Goggle Scholar to find articles relating to the demand for products which interest you. The key here is that the term elasticity may not appear in the title of an article but the term demand should. Once you have identified a relevant article you will have to read the paper to find the elasticity estimate(s), these are typically given in tables. As an example of a search we found: Kumar, S. (2017) Price elasticity of alcohol demand in India. Alcohol and Alcoholism, 52(3): 390-395. This article provides estimates of the price elasticity of demand for various alcohol types in India. These estimates in general (high or low) would then be compared to the economic determinants of high or low elasticities provided by the subject materials.
3. The Northern Territory (NT) has introduced a minimum price on alcohol of $1.30 per standard drink. Examine the potential consequences of the imposition of this minimum price for the various types of alcohol products in the NT using the demand and supply framework.
Here you should initially try to find some information on the floor price imposed in the NT through Goggle. A good source might be: https://alcoholreform.nt.gov.au/floor-price. In describing the effects of a minimum price on a market you should access the subject’s material on this. The trickypart here is the need to recognise various types of alcohol makets in the analysis. Just limit yourself to two alcohol types which are affected differently by the minimum price. When using diagrams just leave it in general terms, don’t need to have specific quantity and price figures. With two alcohol types you will need two diagrams. For some information on how a flat tax (and hence a standard minimum price) may impact the various types of alcohol products differently have a look at:https://theconversation.com/minimum-price-on-alcoh...
4. Some Australian airline operators claim that some Australia airports abuse their monopoly power by charging excessive fees and charges for the services they provide. Use the monopoly model to explain why and how this ‘blatant profiteering’ may occur.
You will have to demonstrate your knowledge of the monopoly model from the subject’s materials. You will need to identify the reasons for the existence of a monopoly in the Australian airports case as this will determine the type of monopoly diagram you will use. You should look at which particular types of services are subject to excessive monopoly power. For this, some of the key information sources are:
Australian Competition & Consumer Commission (ACCC) (2018) Productivity Commission Inquiry into the Economic Regulation of Airports. ACCC submission in response to the Issues Paper. ACCC: Canberra.
Productivity Commission (2011) Economic Regulation of Airport Services. Inquiry Report no. 57.Productivity Commission: Canberra.