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Approximately 1000 words Submission method options Alternative submission method Task Assignment 1 consists of two problem questions (worth 5 marks each) based on text material. Text material which may be relevant to this question may be drawn primarily from any of Text chapters 1, 2, 3 and 4. Answer the following: Question 1 “Economic models are false and so government should ignore their predictions.” Explain, discuss and evaluate the accuracy of this statement. Question 2 Using the economics or other literature (but not the textbook) to identify estimates of the price elasticity of demand for at least three different products. Provide full citations for the employed literature. Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand. Rationale The question addresses the following learning outcomes: be able to apply demand and supply analysis to make a range of market related decisions be able to identify and critically evaluate opportunities for specialisation and exchange. be able to make decisions that incorporate the relevant benefits and cost analysis
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