ECONOMICS ASSIGNMENT

Economics Assignment

Economics Assignment

Answer 1:

Aus governments' health department has some stats relating an increase in alcohol price to the drop in demand making it an elastic product.

To this point, we have developed two behavioral statements, or assertions, about how people will act. First says that amount buyers are willing and ready to buy depends on price and or factors that are assumed constant. Second says that amount sellers are willing and ready to sell depends on price and or factors that are assumed constant (Collins 2008). In mimetically terms our model is

Ad = f (price, constants)

Qs = g (price, constants)

If one of many factors that is being held constant changes, n equilibrium price and quantity will change. Furr, if we know which factor changes, we can often predict direction of changes, though rarely exact magnitude (Wagenaar 2009). For example, market for wheat fits requirements of supply and demand model quite well. Suppose re is the drought in main wheat-producing areas of United States. How will we show this on the supply and demand graph? Should we move demand curve, supply curve, or both? Wha Answer 1:

Aus governments' health department has some stats relating an increase in alcohol price to the drop in demand making it an elastic product.

To this point, we have developed two behavioral statements, or assertions, about how people will act. First says that amount buyers are willing and ready to buy depends on price and or factors that are assumed constant. Second says that amount sellers are willing and ready to sell depends on price and or factors that are assumed constant (Collins 2008). In mimetically terms our model is

Ad = f (price, constants)

Qs = g (price, constants)

If one of many factors that is being held constant changes, n equilibrium price and quantity will change. Furr, if we know which factor changes, we can often predict direction of changes, though rarely exact magnitude (Wagenaar 2009). For example, market for wheat fits requirements of supply and demand model quite well. Suppose re is the drought in main wheat-producing areas of United States. How will we show this on the supply and demand graph? Should we move demand curve, supply curve, or both? What will happen to equilibrium price and quantity?

Answer 2:

Most fundamental law of economics links price of the product to demand for that product. Accordingly, increases in monetary price of alcohol (i.e., through tax increases) would be expected to lower alcohol consumption and its adverse consequences. Studies investigating such the relationship found that alcohol prices were one factor influencing alcohol consumption among youth and young adults (Anderson 2006). Or studies determined that increases in total price of alcohol can reduce drinking and driving and its consequences among all age groups; lower frequency of diseases, injuries, and deaths related to alcohol use and abuse; and reduce alcohol-related violence and or crime. KEY WORDS: alcohol or drug (AOD) price; economic or of AOD use (AODU); elasticity of demand; underage drinking; minimum drinking age; drinking ...