1. You need to submit this assignment via Learnonline Gradebook.
2. The word limit is 1000 words.
3. Provide adequate referencing. Check this site for how to cite properly (https://roadmap.unisa.edu.au/). Failure to cite properly is evidence of academic misconduct and will result in marks being deducted or even 0 mark for the whole assignment in serious cases.
Instructions:
Read the article titled "Christmas egg shortage expected after bird flu outbreak" (by Jared Lynch, Source: The Age, Date: Dec 3, 2013) and provide the analysis for the following statements in 3 different sections.
1. What are the possible reasons for the price rise mentioned in the news article? Use one demand and supply model to illustrate how bird flu and Christmas season influence the equilibrium price and output in the egg market. Make sure that you clearly state any underlying assumptions and equilibrium process in your analysis. Include appropiate diagrams.
2. Discuss the determinants of the ‘price elasticity of demand’ for eggs as they apply to consumers, and explain whether demand for eggs is elastic or inelastic. Illustrate the effect of price rise on the total revenue of a farm that has not been affected by the bird flu. Include appropiate diagrams.
3. Considering the egg market in New South Wales (NSW), assume that the state government has decided to intervene and introduce a ceiling on prices. Illustrate the likely impact of such government intervention on the market. Conclude your analysis with a comment on the benefits and problems of the government's maximum pricing policy.
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, 4 marks will be awarded for effective writing including proper grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis. For more information on analysing the article, refer to the Learning and Teaching links on the course website.