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Assignment questions
1. Think about a competitive market in which you participate regularly. For each of the characteristics of a competitive market, explain how your market meets these requirements. Please indicate four
characteristics in your answer.
2. Please follow below instructions carefully to answer this question:
i) Open this link. https://allaplusessays.com/order
ii) Under the “Annual Commodity Statistics” for 2018, select one particular agricultural
commodity of interest, and download its data file.
iii) Collect the statistics of production and price for 10 continuous years. Feel free to start from
any point you would like.
iv) Calculate price elasticity of supply for individual years (e.g. repeat calculation for each year).
v) Provide a table indicating years and the calculated price elasticities for each year and
then, draw the trend of price elasticities in a graph by showing years on horizontal
axis and elasticity on vertical axis (use only line chart).
vi) VI. Provide brief explanation about: a) interpretation of the general elasticity of this
commodity (e.g what does the elasticity mean for this commodity and why the
elasticity is in this range) and b) the main cause of changes in variation of elasticity
during the time by looking at the trend of changes in elasticity (e.g. quantity, price or
both).
3. Think about a business/activity with negative externality:
i) Explain the reason(s) you believe that this business has negative externality.
ii) Illustrate consumer, producer and total surplus by drawing relevant diagrams for this
business/activity.
iii) Explain how the negative externality could be internalised through the demand side.
iv) Illustrate what happens to consumer, producer and total surplus due to this policy.
Please note: no mark is allocated to answers which use the same examples or copy and pastes
the graphs and numbers as instructed in the lecture notes. Your graphs and values used
in them should be matched with your example. You need to clearly explain the values have
been selected in graphs and their measurement units.

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