Traditional Chinese Medical And Gastronomic Beliefs - Economics Assignment

Internal Code: TV667

Economics Assignment:

Scenario 1  Use ‘competitive market’ theory to explain the likely pattern of change in the equilibrium price and equilibrium quantity for tiger parts between 1980 and 2017 using the prompts below (which closely align with the marking guide). Students are to assume illustrative figures and prices only. Questions: 1. a) Create imaginary demand and supply curves for ‘tiger parts’ in 1980 (make sure you label the curves, create axis label and scales, identify the equilibrium price and quantity, create a diagram heading). b) Choose and fully explain ONE demand or supply determinant for ‘tiger parts’ likely to have changed between 1980 and 2017. Illustrate this on a second demand and supply diagram (create all necessary labels). 2. Using competitive market theory, explain fully the ‘market force’ that caused the equilibrium price and quantity for ‘tiger parts’ to change. Students must refer to figures in their second diagram. 3. On a third diagram, a show with brief supporting written commentary, what other circumstances/determinant/variable would need to have changed to allow the equilibrium price for ‘tiger parts’ to increase, but for the equilibrium quantity of ‘tiger parts’ to remain unchanged. Scenario 2: Assume the market for ‘exotic animals’ and make informed price elasticity comments using the prompts below (which closely align with the marking guide). Questions: 1. a. Explain what the ‘price elasticity of demand’ for exotic animals means. b. State the formula for the price elasticity of demand coefficient. Assume a retailer of exotic animals is considering raising prices. Using ‘price elasticity of demand’ principles explain when profits for the retailer will rise and fall following a price rise. 3. Explain two reasons why the price elasticity of demand for exotic animals could be elastic OR two reasons why the price elasticity of demand for exotic animals could be inelastic. Define terms used.