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the concepts of supply and demand

Assessment item 1
Assignment 1: Short Answer Questions
Value: 10%
Due date: 27-Nov-2017
Return date: 18-Dec-2017
Length: Approximately 500 words
Submission method options
Alternative submission method
Task
Assignment 1 consists of two short answer questions (worth 5 marks each) based on Text material. Before attempting this assignment you are expected to have read Text chapters 1, 2, 3 and 4. Sources used in your answer should be fully referenced in APA 6th style.
Answer the following questions ensuring that you apply economic principles or theory related to (a) the concepts of supply and demand for Question 1 and (b) the concepts of specialisation and exchange for Question 2 to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answers with diagrams as necessary.
Question 1 (5 marks)
Explain the concept of the price elasticity of demand and provide examples where understanding the nature of the price elasticity of demand has been important in the decision making of a firm.
Question 2 (5 Marks)
Explain the concepts of comparative advantage and absolute advantage and provide examples of situations in which countries have ignored the principle of comparative advantage to their cost.

Rationale
This assignment provides an opportunity for you to demonstrate that you have engaged with the subject and that you are familiar with the use of the model of supply and demand and concepts of specialisation and exchange.
The questions address the following learning outcomes:
Learning Outcome 1: be able to apply demand and supply analysis to make a range of market related decisions.
Learning Outcome 2: be able to identify and critically evaluate opportunities for specialisation and exchange.
Marking criteria

Criteria HD (85%) DI (75-84%) CR (65-74%) PS (50-64%) FL (0 50%)
Questions 1 and 2: Academic writing clearly communicates meaning (10% weighting). Language features and structures are used to convey meaning effectively, clearly, concisely, unambiguously, and in a tone appropriate to the audience and purpose with no spelling, grammatical, or punctuation errors. Language features and structures are used to convey meaning effectively, clearly, unambiguously, and in a tone appropriate to the audience and purpose with few spelling, grammatical, or punctuation errors. The text contains some errors in spelling, grammar, word choice, and structure, lacks clarity occasionally, and may not be concise, but the meaning is apparent to the reader with little effort. The text contains frequent errors in spelling, grammar, word choice, and structure, lacks clarity, and is not concise, but the meaning is apparent to the reader with some effort. Fails to meet criteria for a pass.
Questions 1 and 2: Academic writing includes APA 6th referencing (10% weighting). Referencing is comprehensive, demonstrates academic integrity, and conforms exactly to APA style conventions. Referencing is comprehensive, demonstrates academic integrity, and conforms to APA style conventions with fewer than three minor errors or omissions which don't impact on the transparency and traceability of the source or the demonstration of academic integrity. Referencing is comprehensive and mostly accurate according to APA style conventions. Up to eight minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity. Referencing is comprehensive and mostly accurate according to APA style conventions. Frequent minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity. Fails to meet criteria for a pass.
Question 1: Analyses supply and demand components to provide market related recommendations and or decisions (80% weighting). The answer synthesises the most important elements of the theory of demand and supply with new insights providing an in-depth application of demand and supply theory along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the correct decisions within the context of specific market circumstances. The answer evaluates the theory of demand and supply and uses the theory to analyse the question. Decisions based on analysis correctly reflect the options available given specified market conditions and are presented through a sound argument showing good judgement. However, minor errors have been found in the narrative or use of diagrams. The answer correctly interprets the theory of demand and supply to analyse the question. Decisions based on analysis correctly reflect the options available given specified market conditions. However, some errors have been found in the narrative or use of diagrams. The answer identifies the most important elements of the theory of demand and supply to analyse the question. Decisions based on analysis correctly reflect the options available given specified market conditions. Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn. Fails to meet criteria for a pass.
Question 2: Correctly utilises trade theory to identify and critically evaluate if opportunities exist for specialisation and exchange (80% weighting). The answer synthesises the theory in relation to specialisation and exchange with new insights providing an in-depth application of trade theory along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the correct decisions relating to specialisation and exchange within the context of specific market circumstances The answer evaluates the theory in relation to specialisation and exchange and uses the theory to analyse the question. Decisions based on analysis correctly reflect the options available with respect to specialisation and exchange given specified market conditions and are presented through a sound argument showing good judgement. However, minor errors have been found in the narrative or use of diagrams. The answer correctly interprets the theory in relation to specialisation and exchange to analyse the question. Decisions based on analysis correctly reflect the options available with respect to specialisation and exchange given specified market conditions. However, some errors have been found in the narrative or use of diagrams. The answer identifies the most important elements of trade theory in relation to specialisation and exchange to analyse the question. Decisions based on analysis correctly reflect the options available with respect to specialisation and exchange given specified market conditions. Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn. Fails to meet criteria for a pass.

Presentation
Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. Sources used in your answer should be fully referenced in APA 6th style. The answer to the question should be divided into three parts:
Part 1: Introduction
The introduction sets up your response by succinctly stating your understanding of the issues, what you think is the best way to analyse the situation – including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be.
Part 2: Analysis
The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to break this section up into a number of sub-parts – one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications.
Part 3: Conclusion
In the conclusion you briefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered.

Requirements
Sources used in your answer should be fully referenced in APA 6th style.
Assignments must be submitted through Turnitin.
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