Economic Foundations and Market Forces - Opportunity Cost - Economics Assignment Help

Assignment Task:

Answer the following questions in a Word document. In your Word document, include only the question number followed by your answer do not provide the question itself. You can draw and scan your graphs and then insert the image into your Word document. Please do not attach a cover sheet to your assignment. You can insert pictures in your document, but they must be low-resolution pictures. You must have 20 words in the document before the first picture or Turnitin will reject the file. If your file is larger than 1 2 MB, then convert your file to a PDF before uploading it into Turnitin. We strongly encourage you to work with your tutor and your fellow peers; however, you must submit your own work in your own words. If we find significant overlap between answers provided by different students, then all students with matching answers will fail that question. Don't share completed answers with others.

Task 1: Economic foundations and market forces

Read the following and answer Questions 1 and 2. Consider two individuals, Jenny and Mary, who can produce both necklaces and bracelets. Jenny can produce 20 necklaces or 30 bracelets in an hour and Mary can produce 15 necklaces or 15 bracelets in an hour.

Question 1. What is absolute advantage? From the information provided, who has an absolute advantage in the production of necklaces? Who has an absolute advantage in the production of bracelets? Explain why. (1 mark) Maximum number of words: 60.

Question 2. What is opportunity cost? From the information provided, what is Jenny's opportunity cost of producing one necklace? Explain why. What is Mary's opportunity cost of producing one necklace? Explain why. (2 marks) Maximum number of words: 80 + calculations. 850 words Answer Questions 3 and 4 using the information provided in Table 2: Quantity demanded and supplied for Boost Juice Table 2: Quantity demanded and supplied for Boost Juice Price ($) Quantity demanded Quantity supplied 4 1,000 400 8 800 500 12 600 600 16 400 700 20 200 800

Question 3. Draw the demand and supply curves for Boost Juice. What are the equilibrium price and quantity of drinks? Explain why this is the equilibrium point. (1 mark) Maximum number of words: 50.

Question 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. (2 marks) Maximum number of words: 150.

Question 5. Consider the market for solar panels on the roofs of domestic houses. Assume the market is initially in equilibrium. Using the demand and supply framework, explain what would happen in the market for solar panels if the price of electricity (supplied by the electricity market) was to increase. Include a graph in your answer. (2 marks) Maximum number of words: 150. Read the following short excerpt from the article entitled 'Tree-changers and bargain hunters cause regional house price boom' (Clegg 2018) and answer

Question 6. Holiday spots and towns near regional centres are experiencing boom-level house price growth as first-home buyers and tree changers flock to the country. Young families were increasingly looking to the regions for a more relaxed lifestyle, WBP Group chief executive Greville Pabst said. "Being able to have a bit of a retreat it's quite attractive away from the busy pace of the city," Mr Pabst said. He said affordability was also a huge driver of regional house price growth, and first-home buyer stamp duty savings and government grants for new regional homes pushed prices up. (Clegg 2018)

Question 7. Using demand and supply analysis, and with the aid of a graph, explain how the fact that young families are looking for a more relaxed lifestyle is affecting house prices and quantity in regional towns. Make sure you identify any important determinants of demand and/or supply, and identify any shortage or surplus and how this affects quantity. Explain, using a graph and words, how affordability issues for houses in Melbourne are affecting house prices and quantity in regional towns. Make sure you identify any important determinants of demand and/or supply, and identify any shortage or surplus and how this affects quantity. Contrast the two forces and explain why it may be important to understand the difference between them if you are a property developer. (4 marks) Maximum number of words: 350.

This Economics Assignment has been solved by our Economics Experts at onlineassignmentbank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.