When you study economics in college and get a task of writing an essay in your major, you are expected to present a clear argument and substantiate it with solid evidence that you reference properly.
Hire Writer In conclusion, government place Economic general essay question tax on cigarette and petrol to take care of social benefits and collect tax revenue to finance economic policies. B Examine the impacts of rationing on a certain consumer good.
Rationing defined as an artificial control Of the quantity supply on the allocation Of scare resources. The Economics Times, Rationing can be achieved when government set a maximum price.
Maximum price is effective when it has been set below the market price. Hence, price falls from Pl to P 2. Shortage occurs between IQ and Q.
Deadweight loss is shown in figure 2. Impacts arise in economy due to rationing. Assume that figure 2 is the market for rented accommodation. Government fix a maximum price for that. At a price of Plthey are a lot of homeless people who are unable to pay for rent.
Government intervenes by fixing a maximum price for accommodation of UP. In short run, landholder will continue to offer IQ of housing while the homeless people reduce as they are able to afford the lower rental price.
In long run, demand is higher at UP than at Pl and the supply is lower. Therefore, excess demand occurs between IQ and Q which result in shortage. Anderson, Consumer demand for housing at lower price is higher. Whereas, landholder will reduce their supply by selling off their properties as they make no profit from supplying at that price.
A black market may develop illegally where rents are above the maximum price UP. Consumers may be benefited from maximum price when they are able to acquire the goods. Yet, it will disadvantage those who are willing to pay a higher price for the goods but are unable to obtain it because of shortage of supply.
Moreover, there is a loss of consumer welfare due to the decreasing in quantity traded. This has shown by the small triangle shaded area which represents the deadweight loss. In conclusion, rationing on consumer goods result in shortage in short run and black market in long run.
Deprivation of consumer welfare cause deadweight loss. C Why is the concept of price elasticity of demand of interest to the owner of a travel agent. Price elasticity Of demand is a value shows the responsiveness of the quantity demanded due to a change in its price.
Elastic demand is a circumstances in which a lower percentage change in the price of a product result in a higher percentage change in quantity demanded.
Lower income group people are elastic demand as they are more sensitive to the price change. Assume that figure 3. Lower income group people may not able to afford a higher traveling cost to overseas countries such Europe, Paris and Germany.
Hence, travel agent should lower the price of traveling package targeted on lower income consumer to gain more revenue. Inelastic demand is a circumstances in which a higher percentage change in price will only affect a lower percentage change in quantity demanded.
Higher income group people are inelastic as they are less sensitive to the price change. Higher income group people usually place ore emphasize on the better quality of services and luxury. Since they have strong financial ability and they are willing to pay for a higher price. Therefore, travel agent have to increase the price of traveling package targeted on higher income consumer in order to get higher profit.
In conclusion, the concept of price elasticity of demand should be taken into consideration by the owner of travel agent when launching a traveling package so that a higher profit is earned. When consumer is elastic demand, the price should be lower.
How to cite this page Choose cite format:A collection of macro-economic essays on topics Inflation, Economic growth, government borrowing, balance of payments.
Evaluation and critical analysis of all latest issues of the current day. (The Economics Times, ) Rationing can be achieved when government set a maximum price. Maximum price is effective when it has been set below the market price.
Hence, price falls from Pl to P 2. Essay question samples economics. Example essay about love greatest fear laptop essay questions travelling ielts essay for general write a proposal essay loan book importance essay writing skills for and against essay samples birds essay goals in my life family school project essay in telugu language essay about my best job.
General Essay Writing Tips Despite the fact that, as Shakespeare said, "the pen is mightier than the sword," the pen itself is not enough to make an effective writer.
In fact, though we may all like to think of ourselves as the next Shakespeare, inspiration alone is not the key to effective essay writing. Discussion and Essay Questions; What are some examples of scarce resources?
Which scarce resource do you think is the most valuable? Think of a the last important decision you made about how to allocate your time. This question will be discussed in the ninth week of term 3 (JC2) in economics tuition. Discuss whether increasing labour productivity in Singapore would be desirable for the economy.
 Answer Introduction. Labour productivity refers to output per hour of labour.