Economics Assessment Questions – University of Australia

Q1. Discuss in 400-500 words the behaviors of consumers in the market of your choice. Use diagram(s) if necessary/helpful. Your discussion should be based on, but not necessarily be limited to, the followings:

  •  price elasticity of demand for an individual product
  •  the number of substitutes (varieties) available in the market of your choice
  •  some empirical evidence for the above two                                                                     

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Q2. Discuss in 400-500 words the nature of the pricing and production decisions that an individual producer makes in the market of your choice. Use diagram(s) if necessary/helpful. Your discussion should be based on, but not necessarily be limited to, the followings:

  •  the degree of market power (price-setting power) that individual firms possess
  •  some empirical evidence for the above
  •  the model of profit maximization

Q3. Find an example of a tax policy implemented in the market of your choice. Assume that your market of choice is very competitive. Discuss in 400-500 words the effect of the tax policy on the behaviors/decisions/wellbeing of consumers and/or producers. Use diagram(s) if necessary/helpful. Your discussion should be based on, but not necessarily be limited to, the followings:

  •  the model of demand and supply
  •  concepts of consumer surplus and producer surplus

Q4. Discuss in 400-500 words the potential impact of a recession on the market of your choice. Your discussion should refer to a few concepts from the topics covered in week 6.

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