Reference no: EM132395496 , Length: 2000 Words

ECON1247/ ECON1275 Prices and Markets Assignment - Royal Melbourne Institute of Technology - RMIT University, Australia

Project Title: Industry Project into the Market for Fast Food and Takeaway Food Services in Australia

PROJECT GUIDELINESS -

Project Overview - This project provides students with an opportunity to research into life microeconomic aspects of the market for Fast Food and Takeaway Food Services in Australia.

The aim of the project is to give students an opportunity to apply microeconomic concepts and tools acquired in class to a practical context.

Project objectives - This project covers the following course learning outcomes:

1. Identify appropriate foundational microeconomics theories and techniques to apply in the business environment;

2. Apply the economic method to systematically and rigorously analyse economic phenomena;

3. Analyse microeconomic issues within the frameworks of modern microeconomic models and analytical techniques to explain and predict the outcomes of changes in a variety of economic variables;

4. Identify and assess, in a microeconomic framework, the economic issues confronted by individual decision makers and by society as a whole to guide economic decision making;

5. Analyse and evaluate public policy to determine its economic and societal welfare consequences.

PROJECT TASK -

Scenario - You are a Freelance Economics Consultant who has been commissioned by the Commonwealth Government to analyse the state of affairs in the Fast Food and Takeaway Food Services in Australia and report your findings to the Government.

Task - Access the IBIS World report on the industry of Fast Food and Takeaway Food Services in Australia and answer the questions below, in your own words.

To access the IBIS World Report, go to RMIT's home page. Then select 'Library' and launch 'Databases A-Z'. After this, select the popular database of 'IBIS World.' Once in the database, search for 'Fast Food and Takeaway Food Services in Australia.'

1. The market

1.1 Define the market. In your answer, you will need to identify the buyers, sellers and the product(s) exchanged. (maximum 100 words)

1.2 Identify the market structure of fast food and take away food services. Explain how you reached your decision using economic theory and facts. (maximum 200 words)

2. Analysis of the market

So far, you have examined the industry of Fast Food Services in Australia as a whole. Now consider the market for traditional fast food in Australia specifically. Traditional Fast Food is defined as takeaway food including burgers, pizza, chicken, fish and chips, pies, sausage rolls and pastries as opposed to healthier alternatives.

2.1 Identify and briefly analyse two relevant conditions (determinants) of demand that have prevailed in this industry in the past five years. (maximum 200 words)

2.2 Identify and briefly analyse two relevant conditions (determinants) of supply that have prevailed in this industry in the past five years. (maximum 200 words)

2.3 Illustrate the above changes in a demand and supply diagram for the market of traditional fast food showing clearly the impact on the equilibrium price and quantity.

2.4 Elasticity

2.4.1 Using economic theory and facts discuss and explain the probable price sensitivity of traditional fast food. (maximum 100 words)

2.4.2 Would a significant rise in the price of home-cooked meal replacements offered by supermarkets have any impact on traditional fast food? Explain. (maximum 100 words)

2.5 Government intervention.

2.5.1 Outline the existing level of government intervention in the whole industry of fast food services in Australia based on the information available. Give two examples of government intervention in the market for fast foods. (maximum 100 words)

2.5.2 Analyse the impact the level of government intervention is having on the industry. Consider both the firm and the consumer perspectives. (maximum 100 words)

3.0 Further Analysis of the Market - Externalities

In your opinion, explain whether you believe there is any type of externality present in the market for traditional fast food. If an externality is present, describe what action is available to the government in order to eliminate the externality. Illustrate both situations using two graphs - one showing the unregulated market and the other showing the government intervention. (maximum 400 words)

4. Analysis of the future market

4.1 Given the current trends, how is the demand for traditional fast food likely to change in the next five years? Explain. (maximum 100 words)

4.2 Given your answer in 4.1 what would you, as an Economics' Consultant, recommend to businesses in traditional fast food? (maximum 100 words)

So far, you have examined the industry from the perspective of traditional fast foods in Australia. Consider now the Market for 'healthier' fast foods in Australia specifically. Healthier fast foods are defined as fast foods with less fat, sugar and salt including foods such as sushi, salad, yoghurt, wraps, sandwiches and fruit.

4.3 How is demand and supply of healthier fast foods likely to change in the next 5 years? In your answer, briefly discuss two relevant conditions (determinants) of demand and two relevant conditions (determinants) of supply. (maximum 300 words)

4.4 Illustrate the above changes in a demand and supply diagram showing clearly the impact on the equilibrium price and quantity of Healthier Fast Foods in Australia.

Attachment:- Prices and Markets Assignment File.rar