Reference no: EM132280171

Assignment: Length: Maximum 2,000 words each

Submission method options: Alternative submission method

Task: Assignment 2 consists of two questions (worth 10 marks each). Sources used in your answer should be fully referenced in APA 6th style.

Communicate your ideas with correct grammar, spelling and writing style and support your answers with diagrams as necessary.

1. 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, 2018 or 2019. Provide complete references for the sources that you have used. Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand.

2. Identify from media, industry, research or government reports on Australian industry, an example of an organisation that has significant monopoly power. Why does this organisation has monopoly power? Describe how and whether the organisation benefits from this monopoly power. For your example, explain how, why and which consumers lose if monopoly power is exercised. Explain how government intervention is used, or may be used, to curb this power if it exercised.

Rationale: This assessment task will assess the following learning outcome/s:

be able to apply demand and supply analysis to make a range of market related decisions.

be able to make decisions that incorporate the relevant benefits and cost analysis.

be able to explain and defend why it is important to understand the structure of the market in which a firm operates.

This assignment provides an opportunity for you to demonstrate that you are familiar with the use of the model of supply and demand and concepts of industrial structure.