BEO1105 ASSIGNMENT (20%) SEMESTER 3 2016/2017

Total = 25 marks. This will be converted to 20 percent

NOTE: Wherever possible, use graphs to support the answer.
** LATE SUBMISSION WILL ATTRACT A PENALTY OF 10 PERCENT PER DAY,
UP TO A MAXIMUM OF 3 DAYS, INCLUDING WEEKENDS & PUBLIC HOLIDAYS
** PLAGIARISM - ALLOWABLE SIMILARITY INDEX IS 20%

QUESTION 1

Explain, with the use of demand and supply diagrams, the effect of the following events on
the market for solar panels. (Assume ceteris paribus for each of the event).
(a) The price of solar panels has fallen to below the market equilibrium price.
(b) The price of electricity for an average household has increased by 50 percent.
(c) New technology has increased the productivity of solar panel producers.
NOTE: EXPLAIN THE MARKET EQUILIBRIUM ADJUSTMENT PROCESS IN YOUR
ANSWERS. 2+2+2
= 6 Marks

QUESTION 2

Ceteris paribus, an increase in the demand for yoga services has occurred at the same time
when the number of yoga service providers has decreased due to stricter government
regulations. Using demand and supply analysis, explain the impact on price and quantity in
the market for yoga services?
(HINT: THERE ARE 2 FACTORS WORKING AT THE SAME TIME) 5
Marks

QUESTION 3

Recently, due to the discovery of bird flu, the Swedish government ordered the culling of a
few hundred thousand chickens. This was accompanied, at the same time, by a fall in
demand for live chickens. Using demand and supply analysis, explain the impact on price
and quantity in the market for live chickens?
(HINT: THERE ARE 2 FACTORS WORKING AT THE SAME TIME) 5
Marks

QUESTION 4

Assume the price of a good increase from $6 to $8, leading to a fall in quantity demanded
from 50 to 40 units. Using the midpoint elasticity formula, calculate the price elasticity of
demand for the good at this price range. Explain why it is important for a business to
estimate the price elasticity of demand for its product.
4 Marks

QUESTION 5

Assume, in an industry where firms are making an economic profit, the creation of an
internet platform has broken down all entry barriers and resulted in a huge increase in the
number of firms entering the industry. What will be the implication on profit to the existing
firms in this industry? Use graphical demand and supply analysis to support your
explanation.
5 Marks

Jesse Singh (December 2016).

INSTRUCTIONS: Read and adhere to the following.

1. Answer ALL the questions.

2. The final submission should show your understanding and application of the
relevant concepts.

3. Since the assignment forms a part of the final mark for the unit, no assistance will
be provided by the staff in relation to answers to the questions. However, if you
need any clarifications in regard to the questions, you may contact the
lecturer/tutor.

4. Answers must be typed. Diagrams must be hand-drawn using pencil and/or pens.
NO photocopied, photographed or scanned diagrams are allowed. Zero marks will
be awarded.

5. Use Times New Roman, size 12 for the text and 1.5 spacing. Insert page number.

6. Start each question (not sub-questions) on a fresh page. Write on one side of the
page (not both pages).

7. Submit your assignment into Turn-it-in at http://turnitin.com. (Will provide

details later)

* DO NOT submit into VU Collaborate.

* DO NOT remove assignment after submission into Turnitin
* Multiple submission is allowed but the submission must be under the
same name and in accordance to your Tutorial group.

* Penalty: Every 1% above the allowable similarity index of 20% will incur a
1% deduction of mark from the total score obtained.

Note: Plagiarism is a serious academic offence. Read “Guide to

Plagiarism”
uploaded in E-learn.

8. Submit a hard-copy of your assignment together with the following:

i. A completed Assessment Declaration form (Ensure you used the latest

form). The form is available in E-learn (or the Assessment Information
section of the unit website (WebCT/Blackboard), http://ce6.vu.edu.au/ ).

ii. Turn-it-in receipt. (DO NOT need to submit reference list into Turnitin)
 iii. Reference List, if applicable. Please use the Harvard System, refer to
http://lgdata.s3-website-us-east
1.amazonaws.com/docs/1909/377548/Main_Examples_090812.pdf

Important: * Submission of photocopied, photographed or scanned

diagrams in assignment is NOT acceptable and will incur a
penalty.

9. Due Date: 10 January 2017 (Tuesday) from 11 am - 12 noon

ONLY.
 Submit at Ms Wong’s office (Room 204, Level 2, North Building).
 You may get your friend to submit on behalf. He/she will sign on your behalf.
 DO NOT insert assignment under the office door.

10. Late Submission: Marks will be deducted at a rate of 2 marks per day (10%)
up to a maximum of 3 days (including weekends and public holidays) for
unauthorised late submission. Thereafter, assignments will not be marked and
a zero mark will be awarded for the assessment.

 Submission after 12.00 noon on the due date is considered late and the above
penalty shall apply.

 Request for extension will NOT be entertained as sufficient time is given to

complete the assignment.