Reference no: EM132478969

Problem 1

Choose a specific commodity, good or service to analyse its demand and supply determinants. Identify at least three specific non-price demand determinants for this commodity, good or service. Identify at least three specific non-price supply determinants for this commodity, good or service. The identified demand and supply determinants must be based on research evidence, citing and referencing appropriate sources. Explain what happens to the price and quantity transacted for the market for this commodity, good or service if these demand and supply determinants change. Use diagrams to illustrate your answer.

Problem 2

The Australian Energy Regulator sets price ‘caps' for default market offer (DMO) electricity prices for some energy consumers. Describe at what level this DMO price is set. Examine the potential consequences of the imposition of this price ceiling for energy markets using the demand and supply framework. Use diagrams to illustrate your answer.

Your answer must be based on research evidence, citing and referencing appropriate sources.

Learning outcome: be able to apply demand and supply analysis to make a range of market related decisions.
Learning outcome: be able to identify and critically evaluate opportunities for specialisation and exchange.
Learning outcome: be able to make decisions that incorporate the relevant benefits and cost analysis.
Learning outcome: be able to explain and defend why it is important to understand the structure of the market in which a firm operates.
Learning outcome: be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income.

Sources used in your answer should be fully referenced in APA 6th style.

Attachment:- Demand and supply analysis.rar