BUSINESS ECONOMICS assignment

The assignment will demonstrate the student’s/group’s ability to:

-Represent the market of the chosen firm’s product diagrammatically and explain in words the key factors influencing: demand for the firm’s product; the supply of the

product; the price elasticity of demand and the income elasticity of demand.
– Illustrate with separate diagrams and explain in words the effect of; i) an external shock and ii) a change in government policy affecting the market the firm

operates in.

The assignment will:
• Be less than 1000 words with a correctly labelled diagram(s).
• Include a title, introduction and conclusion.
• Include diagrams where appropriate, not hand drawn.
• Word processed in 12 point font at 1.5 spacing.
• Be properly referenced using the Harvard style.
.

1. Students are to choose one of the following firms:
i. A farming company specializing in wheat and barley production (Silo Pty Ltd). The firm is one of many producers in the international market.

In the assignment you are required to describe the factors influencing the market demand and supply curves for the chosen firm’s product or service (e.g. how would a

change in consumer income affect demand). This will include the factors affecting the price elasticity of demand and the income elasticity of demand and from this

description whether demand is elastic (inelastic) in the long and short run, and whether the good (service) is a normal or inferior good (service).

2. Students are to illustrate and explain, using comparative statics, the impact of the following shock in the market in which the chosen firm operates.