MAE101: Economic Principles - The Government of Thailand - Economics Assignment Help

Assignment Task:

Question 1:  

In January 2019, the government of Thailand placed all medical-related fees including drugs, supplies and hospital service charges on a price control list. This was in response to consumer complaints of high charges for the services provided at private hospitals. The government intends to decide on the appropriate prices for the medical services and establish price ceilings on these services.

What effect is this likely to have on the market for hospital services?  What will happen to the quantity of hospital services demanded?  What will happen to the quantity supplied?  Who gains?  Who loses? Draw a diagram to support your answer. (5 marks)

Question 2: 

In recent years hundreds of Chinese electric vehicle (EV) companies have commenced operations as a result of the Government providing support to the Chinese EV industry and China’s policy to have EVs account for a quarter of car sales by 2025. As a result, the supply of EVs in China has increased substantially due to the government’s assistance. 

Using supply and demand analysis graph and explain what effect the increase in Chinese EV production will have on the market for EVs in China and on the market for normal petrol-powered vehicles in China. (5 marks)

Question 3: 

In November 2019 US consumer demand for houses increased substantially as a result of extremely low interest rates which were at their lowest levels in decades. This effectively meant that now had more income with which to purchase houses. At the same time, real estate agents reported that there was a low level of supply of houses for sale, especially homes at lower price brackets. This was due to many people choosing to stay in their houses for longer rather than putting them up for sale. Source:  World Property Journal (2019) 

What are the effects on the equilibrium price and quantity of new houses as a result of the situations described above? Draw a diagram to support your answer. (5 marks)

Question 4: 

In February 2014 a severe drought in Brazil reduced the amount of coffee beans available internationally causing a shortage of coffee in the global coffee market.  Source: Yang, J., (2014)

At the same time, according to Wells Fargo advisors, “There’s very low price-elasticity-of-demand for coffee”. Source: Chayka, K., (2017) 

If the demand for coffee is price-inelastic, the reduction in coffee production will increase the revenue received by coffee producers. Explain why this is so. Use a diagram to support your answer. (5 marks)

Question 5: 

Currently China levies a motor vehicle acquisition tax (an excise tax) on the purchase and importation of cars, motorcycles and certain types of trucks. The rate is equal to 10% of the value of the vehicle. Source: Export Enterprises, (2020)

Consider the market for imported cars in China. The initial market equilibrium prior to the introduction of the excise tax is at 10 million products sold per year at an average price of $20,000 each. Then, the Chinese government imposes a tax on the market, collected from sellers. The tax is 10% per vehicle (each vehicle has an average price of $20,000). 

Show the effect of this on the market for imported vehicles. Show the effect on consumers of imported vehicles, on the sellers and on the government. Does the Chinese economy gain or lose as a result of the tax? Explain why. Use a diagram to support your answer. (5 marks)

This MAE101: 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.