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ECO10004: Economic Principles- The Theatre Company: Economics Assignment Help
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1. From the information provided in Table 1, which country has an absolute advantage in the production of motorcycles? Which country has an absolute advantage in the production of guitars? Explain. (1 mark) – Maximum number of words 80
2. From the information provided in Table 1, what is Ireland's opportunity cost of producing one motorcycle? Explain. What is Scotland's opportunity cost of producing one motorcycle? Explain. (2 marks) - Maximum number of words 80 + calculations
Answer questions 3, 4 and 5 from Table 1
Table 1: Quantity demanded and supplied for the “The Theatre Company”
3. Draw the demand and supply curves for the “The Theatre Company”. What are the equilibrium price and quantity of entry tickets? Explain why this is the equilibrium point. (1 mark) Maximum number of words 50
4. Explain, using the graph in question 3, what would happen if the price was initially $4? Identify any surplus or shortage on the graph above. (2 marks) - Maximum number of words 150
5. What would happen to the demand curve, supply curve, price and quantity if the theatre was to double its capacity? Draw the new graph and explain. (2 marks) Maximum number of words 80
Read the following short excerpt and answer Question 6.
The RBA just scotched a theory about younger Australians choosing not to buy a home Forget the perception that younger Australians are frivolous with their money, or that they now prefer to rent than buy.
The real thing holding Australian first time buyers back from buying a property is rapidly increasing house prices, says John Simon and Tahlee Stone, economists at the Reserve Bank of Australia (RBA).
Rather than a shift in ownership preferences or demographic changes in the years following the global financial crisis, Simon and Stone acknowledge that higher prices are largely responsible for crowding out prospective first home buyers (FHBs) from the market.
“Our results support the hypothesis that higher housing prices have crowded out potential FHBs from the market,” the pair wrote in a discussion paper released on the RBA’s website today.
https://www.businessinsider.com.au/the-rba-just-scotched-a-popular-theory-about- younger-australians-choosing-to-not-to-buy-a-home-2017-9
Author: David Scutt; Business Insider Australia – September 11, 2017.
6. Using demand and supply analysis, how would the fact that young Australians now prefer to rent than buy change the price and quantity in the housing market (keeping all else constant). Briefly contrast the impact of a change in preference to the counter explanation that it is prices rising that is reducing quantity demanded for housing. Explain. (4 MARKS) - Maximum number of words 250
Economics Assignment Help:
Task: Task 1: Economic Foundations and Market Forces 1. Ireland has the advantage in the production of motorcycles do to the fact that it takes them 9 hours to produce one motorcycle. While it takes Scotland 15 hours to produce one motorcycle. 2. Its takes Scotland 15 hours to produce one motorcycle, while it takes them 5 hours to produce one guitar. For every motorcycle they produce they produce 0 guitars. If they create on guitar they produce zero motorcycles. For every motorcycle they have produced they instead of produced three guitars. Table 1: Number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland
1. From the information provided in Table 1, which country has an absolute advantage in the production of motorcycles? Which country has an absolute advantage in the production of guitars? Explain. (1 mark) – Maximum number of words 80
2. From the information provided in Table 1, what is Ireland's opportunity cost of producing one motorcycle? Explain. What is Scotland's opportunity cost of producing one motorcycle? Explain. (2 marks) - Maximum number of words 80 + calculations
Answer questions 3, 4 and 5 from Table 1
Table 1: Quantity demanded and supplied for the “The Theatre Company”
3. Draw the demand and supply curves for the “The Theatre Company”. What are the equilibrium price and quantity of entry tickets? Explain why this is the equilibrium point. (1 mark) Maximum number of words 50
4. Explain, using the graph in question 3, what would happen if the price was initially $4? Identify any surplus or shortage on the graph above. (2 marks) - Maximum number of words 150
5. What would happen to the demand curve, supply curve, price and quantity if the theatre was to double its capacity? Draw the new graph and explain. (2 marks) Maximum number of words 80
Read the following short excerpt and answer Question 6.
The RBA just scotched a theory about younger Australians choosing not to buy a home Forget the perception that younger Australians are frivolous with their money, or that they now prefer to rent than buy.
The real thing holding Australian first time buyers back from buying a property is rapidly increasing house prices, says John Simon and Tahlee Stone, economists at the Reserve Bank of Australia (RBA).
Rather than a shift in ownership preferences or demographic changes in the years following the global financial crisis, Simon and Stone acknowledge that higher prices are largely responsible for crowding out prospective first home buyers (FHBs) from the market.
“Our results support the hypothesis that higher housing prices have crowded out potential FHBs from the market,” the pair wrote in a discussion paper released on the RBA’s website today.
https://www.businessinsider.com.au/the-rba-just-scotched-a-popular-theory-about- younger-australians-choosing-to-not-to-buy-a-home-2017-9
Author: David Scutt; Business Insider Australia – September 11, 2017.
6. Using demand and supply analysis, how would the fact that young Australians now prefer to rent than buy change the price and quantity in the housing market (keeping all else constant). Briefly contrast the impact of a change in preference to the counter explanation that it is prices rising that is reducing quantity demanded for housing. Explain. (4 MARKS) - Maximum number of words 250