The government has announced how all households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn. The money, part of the Energy Bill Support Scheme, will be paid in six instalments. Households will see a discount of £66 applied to their energy bills in October and November, and £67 a month from December to March 2023. But how the money is received will depend on how you pay your bill. a) Apply supply and demand theory model to the policy. Who is making the decision, and who/what are we ignoring? What technical assumptions must we make when applying the model to the real-world situation. Are these assumptions strong? You can assess the strength of an assumption with logical argument or with empirical evidence. b) Model the policy (or element of it) using the theory model. Use graphs to make a prediction

The government has announced how all households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn. The money, part of the Energy Bill Support Scheme, will be paid in six instalments. Households will see a discount of £66 applied to their energy bills in October and November, and £67 a month from December to March 2023. But how the money is received will depend on how you pay your bill. a) Apply supply and demand theory model to the policy. Who is making the decision, and who/what are we ignoring? What technical assumptions must we make when applying the model to the real-world situation. Are these assumptions strong? You can assess the strength of an assumption with logical argument or with empirical evidence. b) Model the policy (or element of it) using the theory model. Use graphs to make a prediction

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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