Question: 1. Using the above figures and Microsoft Excel, map out the Production Possibilities Frontier (PPF) for the production of the Schmeckt Gut Energy Bar and Schmeckt Gut 2.0.
style="text-align: justify;">1) The relevant PPF as drawn using Excel is shown as follows.
Question2: In your own words, while making use of the graph that you have created in part 1, explain what the PPF is.
2) It is representative of the possible output combinations for the two goods provided assuming that the underlying resources are used optimally. Hence, with the resources at hand, it is not possible to achieve any production level which lies outside the boundary indicated by PPF. Thus, if one desires to produce more than 5000 units of Schmeckt Gut 2.0, then the same canoe be achieved as it lies outside the PPF.
Question 3: District D usually has a demand of 3,000 Schmeckt Gut 2.0 and 18,000 Schmeckt Gut Energy Bars. Suddenly we receive notice that the demand has increased to 4,000 Schmeckt Gut 2.0 and 20,000 Schmeckt Gut Energy Bars. a. Discuss and explain at least three possibilities how we could meet that demand. b. For each solution that you have identified and discussed above, explain whether or not your solution is sustainable
3) It is apparent that the new demand tends to exceed the maximum possible output in accordance with the PPF since it is apparent that with 4000 Schmeckt Gut 2.0 production, not more than 10000 Schmeckt Gut Energy Bar units can be produced while the demand is 20000 units. Thus, there is shortfall and require measures to be taken for meeting the higher demand (Dombusch, Fischer & Startz, 2016).
2) Increasing the resources (capital, labour, land) devoted to the production of the two products, so that the desired output level can be achieved within the given time frame.
3) The shortfall can be met though imports from neighbouring nations assuming that surplus are available.
1) The technological change would be sustainable as once enacted it would keep the higher production for future time period also.
2) The resource addition may be sustainable or not depending upon the underlying source of these resources. Typically internally generated resources would sustainable while the externally generated resources would not be.
3) The option to import is not sustainable and is clearly a short term strategy to meet the higher demand so that a more sustainable solution may be worked out (Koutsoyiannis, 2015).
Question 1: What are the market equilibrium price and quantity?
1) At equilibrium, the demand and supply functions need to be equated with an equilibrium price assumed as P and equilibrium quantity assumed as Q.
800-2Q = 200 + Q
On solving, Q comes out as 200 units.
By substituting the above value of Q in the demand equation, the equilibrium price P may be estimated.
P = 800 – 2*200 = $ 400
Thus, the equilibrium price and quantity are 200 units and $ 400 respectively.
Question 2: If the subsequent price increases by $1, how does demand and supply change? Explain with the help of the concepts of the law of demand and supply.
2) In accordance with the demand equation, it is apparent that price and quantity have an inverse relation. Hence, the increase by $ 1 would lead to lower demand. The precise change in this regards may be estimated by substituting the value of P with (P+1) in the demand equation indicated above (Besanko & Braeutigam, 2014).
Further, the supply equation indicates a positive slope which is on expected lines considering the suppliers tend to increase the production when a higher price is offered. Thus, when the price is hiked by $ 1, then the supply of energy bar would increase. The precise change in this regards may be estimated by substituting the value of P with (P+1) in the supply equation indicated above (Pindyck & Rubinfeld, 2014).
Q: provide an example from your day to day work in which you can see supply and demand ?
this question should be with out reference in the assignment as a fifth question
Example of Demand & Supply
With regards to the price of various items in the supermarkets, I see the demand and supply having a role. This is because the price of these items tends to increase when there is a demand. Also, these tend to decrease when there is decrease in demand or increase in supply. Consider for example lamb meat prices. When the supply of this is lesser, the price of this in the supermarkets tends to increase and the consumers have to pay more. Similarly, in case certain imported grocery items, price tends to vary with the supply.
Besanko, D. & Braeutigam, R. (2014) Microeconomics, New York: John Wiley & Sons.
Dombusch, R, Fischer, S & Startz, R (2016).Macroeconomics (10th ed) New York: McGraw Hill Publications
Koutsoyiannis, A. (2015). Modern Macroeconomics (4th ed), London: Palgrave McMillan
Pindyck, R. & Rubinfeld, D. (2014) Microeconomics, London: Prentice-Hall Publications
To export a reference to this article please select a referencing stye below.
Assignment Hippo (2022) . Retrive from https://assignmenthippo.com/sample-assignment/econ6000-economic-principles-and-decision-assessment-answer
"." Assignment Hippo ,2022, https://assignmenthippo.com/sample-assignment/econ6000-economic-principles-and-decision-assessment-answer
Assignment Hippo (2022) . Available from: https://assignmenthippo.com/sample-assignment/econ6000-economic-principles-and-decision-assessment-answer
Assignment Hippo . ''(Assignment Hippo,2022) https://assignmenthippo.com/sample-assignment/econ6000-economic-principles-and-decision-assessment-answer accessed 03/10/2022.
Talk to our expert to get the help with Econ6000 Economic Principles And Decision Assessment Answers from Assignment Hippo Experts to complete your assessment on time and boost your grades now
The main aim/motive of the finance assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignment help Australia. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks.Â The experts of the assignment help services at www.assignmenthippo.com are so much skilled, capable, talented, and experienced in their field and use our best and free Citation Generator and cite your writing assignments, so, for this, they can effectively write the best economics assignment help services.
Want to order fresh copy of the Sample Econ6000 Economic Principles And Decision Assessment Answers? online or do you need the old solutions for Sample Econ6000 Economic Principles And Decision Assessment Answer, contact our customer support or talk to us to get the answers of it.Assignment Help Australia
Want to order fresh copy of the Econ6000 Economic Principles And Decision Assessment Answers? online or do you need the old solutions for Sample Econ6000 Economic Principles And Decision Assessment Answer, contact our customer support or talk to us to get the answers of it.
Our motto is deliver assignment on Time. Our Expert writers deliver quality assignments to the students.
Get reliable and unique assignments by using our 100% plagiarism-free.
Get connected 24*7 with our Live Chat support executives to receive instant solutions for your assignment.
Get Help with all the subjects like: Programming, Accounting, Finance, Engineering, Law and Marketing.
Get premium service at a pocket-friendly rate at AssignmentHippo
I was struggling so hard to complete my marketing assignment on brand development when I decided to finally reach to the experts of this portal. They certainly deliver perfect consistency and the desired format. The content prepared by the experts of this platform was simply amazing. I definitely owe my grades to them.