Reference no: EM132307675 , Length: word count:1000

Assignment questions

1. Think about a competitive market in which you participate regularly. For each of the characteristics of a competitive market, explain how your market meets these requirements. Please indicate four characteristics in your answer.

2. Please follow below instructions carefully to answer this question:

i) Open this attached link.
ii) Under the "Annual Commodity Statistics" for 2018, select one particular agricultural commodity of interest, and download its data file.
iii) Collect the statistics of production and price for 10 continuous years. Feel free to start from any point you would like.
iv) Calculate price elasticity of supply for individual years (e.g. repeat calculation for each year).

v) Provide a table indicating years and the calculated price elasticities for each year and then, draw the trend of price elasticities in a graph by showing years on horizontal axis and elasticity on vertical axis (use only line chart).
vi)

VI. Provide brief explanation about: a) interpretation of the general elasticity of this commodity (e.g what does the elasticity mean for this commodity and why the elasticity is in this range) and b) the main cause of changes in variation of elasticity during the time by looking at the trend of changes in elasticity (e.g. quantity, price or both).

3. Think about a business/activity with negative externality:
i) Explain the reason(s) you believe that this business has negative externality.
ii) Illustrate consumer, producer and total surplus by drawing relevant diagrams for this business/activity.
iii) Explain how the negative externality could be internalised through the demand side.
iv) Illustrate what happens to consumer, producer and total surplus due to this policy.

Attachment:- Assignment Questions.rar