Question 1
Choose a specific commodity to analyse its demand and supply determinants. Describe and discuss the specific demand determinants for this commodity. For this commodity what determines why a movement or shift in the demand curve occurs. Describe and discuss the specific supply determinants for this commodity. For this commodity what determines why a movement or shift in the supply curve occurs. Wherever possible use diagrams to illustrate your answers.
Question 2
Use the economics or other literature (but not the textbook) to identify estimates for the price elasticity of demand for at least three different food products. Provide full citations for the employed literature. Comment on the magnitudes of these estimates in relation to the standard economic determinants of the price elasticity of demand
Question 3
Using diagrams explain and describe the difference between a price ceiling and a price floor. What are the consequences of imposing a price ceiling and price floor on consumers and producers? How are they practically imposed? Give examples of markets with a price ceiling and a price floor.
Question 4
Identify a current market in which a monopoly (or excessive monopoly power) exists. Discuss in detail the barriers to entry which exist to support the monopoly power. Use a diagram to illustrate this market power and its consequences. Identify whether the monopoly is regulated. If it is regulated describe the nature of the regulations. If it is not regulated explain why. Use cited references to support your arguments.