Question 2 For each of the events describe below, you are required to explain: 1. The market you are evaluating (e.g., labour market, automotive market, etc). 2. Does the event act on the demand side, supply side, or both sides of the market? 3. Does the event lead to a quantity or price change? Or does the event lead to a shift in demand, supply, or both? Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply (when plotting your demand and supply, describe whether you are assuming an elastic or inelastic demand/supply). a) The implementation of a “maximum rent" program in the housing rental market b) The implementation of a minimum wage c) The implementation of subsidies to agriculture production in Australia d) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy. e) The implementation of a new loan program to university students in the education sector
Question 2 For each of the events describe below, you are required to explain: 1. The market you are evaluating (e.g., labour market, automotive market, etc). 2. Does the event act on the demand side, supply side, or both sides of the market? 3. Does the event lead to a quantity or price change? Or does the event lead to a shift in demand, supply, or both? Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply (when plotting your demand and supply, describe whether you are assuming an elastic or inelastic demand/supply). a) The implementation of a “maximum rent" program in the housing rental market b) The implementation of a minimum wage c) The implementation of subsidies to agriculture production in Australia d) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy. e) The implementation of a new loan program to university students in the education sector
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 2
For each of the events describe below, you are required to explain:
1. The market you are evaluating (e.g., labour market, automotive market, etc).
2. Does the event act on the demand side, supply side, or both sides of the market?
3. Does the event lead to a quantity or price change? Or does the event lead to a shift in
demand, supply, or both?
Make sure to explain what sort of assumptions you are making on the elasticities of demand
and supply (when plotting your demand and supply, describe whether you are assuming an
elastic or inelastic demand/supply).
a) The implementation of a "maximum rent" program in the housing rental market
b) The implementation of a minimum wage
c) The implementation of subsidies to agriculture production in Australia
d) The implementation of a Carbon tax in the economy. A Carbon tax is charged
according to the level of emissions of greenhouse gases in an economy.
e) The implementation of a new loan program to university students in the education
sector
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For each of the events describe below, you are required to explain:
1. The market you are evaluating (e.g., labour market, automotive market, etc).
2. Does the event act on the
3. Does the event lead to a quantity or price change? Or does the event lead to a shift in
demand, supply, or both?
Make sure to explain what sort of assumptions you are making on the elasticities of demand
and supply (when plotting your demand and supply, describe whether you are assuming an
elastic or
a) A concerted reduction in the total production level in oil markets.
b) The implementation of a minimum wage.
c) The implementation of subsidies to agricultural production in Australia
d) The implementation of a Carbon tax in the resources exploitation sector. A Carbon tax
is charged according to the level of emissions of greenhouse gases in an economy.
e) The implementation of a new loan program to university students in the education
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