Assessment Brief

The report will provide an analysis of the microeconomic environment that impacts on an organisation or sector of the group's choice.

Choose - Housing as a main market sector

Context:

As part of the report, the group will examine the microeconomic aspects affecting the business or sector selected. It will include a full discussion that identifies the key features and constraints that impact the competitive environment under consideration. Economic models can be very useful tools for understanding the workings of many markets and sectors.

Task:

You are required to do the following:

Theory and Practice:

Take a market sector of your choice and apply the supply and demand model to it as follows:

1. Briefly explain the relevant economics model used and any underlying assumptions

2. Describe the characteristics of this market, including in your answer demand, supply and pricing, extent of competition in the industry, etc.

3. Set out your view on the factors that have caused shifts and/or movements in the demand and/or supply curve over time in this market, resulting in new equilibrium positions

4. Identify the role of Government and intervention in the market and how intervention may have assisted and/or impeded the sector over time

5. Suggest ways in which Government policy might aid the sector of your choice into the future.