This assessment is worth 30% of total marks in the subject.
Knowledge of the concept of elasticity is critical for business and governments as it plays a crucial role in understanding the behaviour of consumers and producers in the market. In particular, concepts such as price elasticity of demand, income elasticity of demand, and price elasticity of supply can inform the strategic choices of business and guide government policy formulation.
This assignment consists of two separate tasks that must be submitted at the same time. Your response to each task should be no more than 400-500 words plus diagrams. Use headings for Task 1 and Task 2.
Your responses must draw on real world examples and include appropriate diagrams.
Task 1:
Imagine you are a consultant economist and your business has been contracted to provide advice to a producer of electric vehicles about the importance of elasticity to their strategic choices. Prepare a short report that addresses how the various types of elasticity impact the business. (400-500 words plus diagrams).
Task 2:
For this task you should consider yourself in the role of an economist in a central government agency like Treasury. In your role you evaluate issues relating to economic policy proposals. Your task here is to provide a report about the impact of a tax levied on processed foods that contain high levels of salt. The aim of this policy is to reduce consumption of unhealthy foods. You should focus on the importance of elasticity on the achievement of the objectives of the tax and discuss any potential unintended impacts of the tax (400-500 words plus diagrams).
Intended Learning Outcomes:
1.
Apply economic frameworks for policy and business decision-making.
2.
Research and apply economic concepts to predict how changes in economic conditions may impact individuals, businesses and industries within market structures.
3. Critically analyse economic data to explain relationships between economic variables and their impacts on policy, business and individuals.
4. Construct and present logical and persuasive economic arguments and communicate concepts professionally.
