Answer all four (4) questions. Maximum of 500 words for each question. Use diagrams whereÂ
appropriate to enhance and explain your response. Provide supporting evidence and referencesÂ
where appropriate to justify your arguments. Please note that in answering economics questionsÂ
it is important to first identify which part of economic theory you should be drawing on in orderÂ
to respond appropriately. Your response should always be firstly identifying what part of theoryÂ
the question relates to and explaining that theory, how the theory helps to answer the questionÂ
and then presenting the solution to the question poised.
Question 1. Suppose you are in charge of sales at a pharmaceutical company, and your firm hasÂ
a new drug that causes bald men to grow hair. Assume that the company wants to earn as muchÂ
revenue as possible from this drug. If the elasticity of demand for your companyâ€™s product at theÂ
current price is 1.4, would you advise the company to raise the price, lower the price, or to keepÂ
the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer.
Question 2. Automobile manufacturing is an industry subject to significant economies of scale.Â
Suppose there are four domestic auto manufacturers, but the demand for domestic autos is noÂ
more than 2.5 times the quantity produced at the bottom of the long-run average cost curve.Â
What do you expect will happen to the domestic auto industry in the long run?
Question 3. For a high-income economy like Australia, what aggregate production functionÂ
elements are most important in bringing about growth in GDP per capita? What about a middleï¿¾income country such as India? A low-income country such as Afghanistan?
Question 4. Imagine that the government statisticians who calculate the inflation rate have beenÂ
updating the basic basket of goods once every 10 years, but now they decide to update it everyÂ
five years. How will this change affect the amount of substitution bias and quality/new goodsÂ
The following points are a general guide for presenting assessment items.
â€¢ Responses to assessment items should be typed. Use 1.5 spacing.
â€¢ Use a wide left margin. Markers need space to be able to include their comments. Use aÂ
standard 12pt font such as Times New Roman, Calibri or Arial.
â€¢ Left- justify body text.
â€¢ Include a separate title page with your name, student number, subject code, assessmentÂ
question. Number your pages (except the cover page).
â€¢ Use a header or footer with your name and student number on each page.
â€¢ Always keep a copy of your assessments. Both a hard copy and an electronic copy.
â€¢ Most importantly, always use your spelling and grammar checker, but remember that thisÂ
does not pick up all errors. You must still manually and carefully edit your work.
â€¢ You need to appropriately reference all the articles, reports and web-sites you employ inÂ
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more