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A.Explain the concept of the price elasticity of demand and using the economic journals identify estimates of the price elasticity of demand for at least two different products (one for inelastic and one for elastic). Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand. Why is it important for the producer to consider the price elasticity of demand when setting the price for the product?
In answering this question, as a minimum, you need to
1.explain the concept and types of price elasticity of demand and its importance in economics.
2.identify actual elasticity of demand estimates for two products from economic journals and critically analyse the magnitude of these estimates
3.analyse the role of elasticity of demand when setting the price for the producer
4.provide appropriate graphs and estimates
B.What are the characteristics of an oligopolistic market? Explain, providing appropriate examples, why car manufacturers are constantly introducing new models.
At a minimum, you should
1.discuss the key features of oligopoly
2.provide a brief description of the car manufacturing industry and its oligopolistic characteristics
3.analyse the impact of product differentiation and advertising in car manufacturing.
C.What are the economic consequences of climate change? Will the actions we take today in Australia be enough to forestall the direct impacts of climate change?
In answering this question, you need to
1.discuss the causes and the economic consequences of climate change
2.explain the solutions that have been attempted in Australia or are proposed to address climate change
3.use supportive data and graphs to justify your answer
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