2305AFE: Intermediate Microeconomics - Economics Assignment Help

Assignment Task:

Question 1 
Scenario 1
 “Bushfire stock losses mount as producers brace for another flashpoint”

“THOUSANDS of head of cattle have been lost in the devastating bushfires raging across southern Australian and hundreds of thousands of litres of milk are likely to be tipped out before tankers can again reach dairies.
The full scale of the stock losses, lost production and destroyed pastures and infrastructure are not expected to be known for weeks, possibly months.
In both states, the dairy industry has been heavily impacted, with heifer losses exceptionally high, producers and industry leaders have reported.
Two key dairy production areas, East Gippsland in Victoria and the New South Wales south coast, were heavily burned.”
Economic Analysis
The above newspaper article extract describes an economic scenario relevant to the Australian dairy industry. Considering the information presented above, present an economic analysis on the impact of bush fires on the Australian dairy industry. Use the essence of the story given in the scenario and include assumptions you have made in this economic analysis.  In your answer, highlight the short-run outcome and supply shifter in the scenario and how the economic model can explain this short-run outcome. What are the implications for milk price? Use appropriate economic models in your answer (no need of calculations).
In the next section, check if the economic model’s predictions have been eventuated. For this, undertake desk research to support your arguments presented in the above section.  Use data, and graphs/figures to strengthen your arguments. 
  
Question 2 
Scenario 2

Coronavirus: Ridiculous scenes across country as toilet paper panic persists
A Current Affair Staff – 04 March  2020
 
‘The threat of a coronavirus pandemic has led people across the country and abroad to panic buy toilet paper.
The madness has even seen reports emerge of a delivery man in Hong Kong being robbed at knifepoint for 600 toilet paper rolls.
It is unclear exactly why loo paper has become the hot ticket item for a potential battle with a respiratory infection, but there isn't much logical about these scenes, which some psychologists are suggesting is a demonstration of herd mentality.
"I think it's ridiculous! Why toilet paper?" a Sydney shopper told A Current Affair. "The only reason I've bought it is because I didn't think I could get any."
Woolworths has introduced a four-pack limit for toilet paper today as stores across the country ran out of the highly sought-after product. 
….
Instead, supermarket shelves across the country have been decimated, leaving empty aisles documented in the Gold Coast, Geelong, Double Bay, Richmond, Redcliffe, Leichhardt, Donvale, Roselands, just to name a few’

Economic Analysis
Read the article extract above. 

Using an appropriate theory from this course (not the explanations can be found from social media) to explain panicking buying behaviour of toilet paper in Australia. Use appropriate graph/s in your explanation. 
In writing your answers, consider the essence of the story given in the scenario and include assumptions you have made in this economic analysis.   

Question 3 
Quantitative Analysis
 
The Australian supply and demand curves for the coffee bean is as follow:
Supply:     QS= 750 + 50P
Demand:            QD= 2000 – 75P
Where P is the price in AUD per kilogram and Q is the quantity in millions of tons. The supply sources of coffee beans include products from Australian owner farms, which have a capacity of 800 million tons and import the rest from abroad.
Part 1. Answer the following questions:

1. What is the market-clearing price of coffee beans in Australia? Express your calculation.
2. How much coffee beans Australia market need to import?.
3. Calculate consumer surplus and producer surplus. 
4. Illustrate clearly the answers of question 1, 2 and 3 in a graph.

Part 2. After a series of catastrophic events, including prolonged drought in northern Queensland, coffee is grown predominantly. The Australian Farmer Association indicated that market-clearing price is not conducive to domestic production. In an attempt to protect domestic producers, the Australian Government decides to tighten imports by establishing import quotas, which equals to half of the current import level. Answer the following questions:

1. What is the new market-clearing price and the market-clearing quantity of coffee beans in Australia? Explain your calculation in detail.
2. How much is the net benefit that domestic farms can gain from this policy of the Government? Explain your calculation in detail.
3. How much is the cost to the Government in imposing this policy? Explain your calculation in detail.
4. Illustrate clearly the answers of question 5, 6, 7 and 8 in a graph.

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