Reference no: EM132162438

NSW drought: Analysts warn shoppers to expect a number of items to rise in price.

Please read the article attached and answer the questions:

1. Using demand and supply model, explain what is likely to happen to price of red meat during a drought. Please make sure you clearly explain the equilibrating process.

2. Based on your understanding of the determinants of price elasticity of demand, do you think demand for red meat is elastic or inelastic? Explain what is likely to happen to farmers' total revenue "when the drought breaks".

Your assignment will also be assessed on how effective you can communicate with the reader, i.e. how well you have presented your arguments and ensured your analysis is logical and consistent. Consequently, 1 mark will be awarded for effective writing including proper grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis.

Checklist:

1. Provided clear definition of key economic terms.
2. Included well-drawn diagram/s (where appropriate) that are clearly labelled (both axis and curve/s) for each question.
3. Discussion and explanation of diagram is included in the answer.
4. Answers provided are related to the topics that have been taught in ECON1008 course.
5. Questions are answered individually and NOT in an essay form.
6. Within the 500 word limit. [NB: Anything <450 words would mean that you have not provided clear/detailed explanation of the concepts].
7. Check spelling and sentence structure.
8. In-text referencing.
9. Referencing list

Attachment:- Assignment part.rar