Economics in an International Context Assignment - Markets and Prices

The aims of this assignment are to test your ability to accurately describe how a market operates and how markets help to allocate scarce resources. For this essay assignment you need to answer the below question.

Question -

Use demand and supply analysis to describe the process by which a market determines the price of new cars in the UK.

Analyse the impact on this market of

i. a significant and sustained increase in the price of steel

ii. a deliberate attempt by the UK government to increase the use of public transport by reducing costs of providers.

(Use diagrams to help explain your answer).

Suggestions:

You may find it useful to think about this essay question in separate but related parts;

The first part of the question is asking you to explain how markets enable buyers and sellers to come together to exchange;

The second part of the question asks you analyse the impact on this market of two separate scenarios.

You are also specifically asked to use diagrams as part of your response to the question;

A successful essay will need to provide all of these things as a minimum;

i. a definition of what a market is and the key elements involved,

ii. a description of how prices are determined,

iii. an explanation of how price can help identify useful goods and services,

iv. Examples and diagrams which properly and fully illustrate your points

We have not discussed all of these ideas together. This is deliberate because it means you will have to do some research. For a piece of work of this length I would expect to see references of at least three academic works;

Your notes or materials provided in class will not be counted as academic references.