ECON111 MICROECONOMIC PRINCIPLES Assignment

INDIVIDUAL ASSIGNMENT

Total Marks 80 – Weighting: 20%

PURPOSE : ECON111 Microeconomic Principles Assignment Help Macquarie University

The Individual Assignment relates to the following Learning Outcomes:
• Recognize and communicate the importance of microeconomics in the Australian
and global economies
• Knowledge and understanding: Recognize how principles of microeconomics are
relevant in understanding decision-making by individuals, business and government
• Problem solving: Apply theoretical understanding of microeconomics to real life
economic problems
• Ethics: Demonstrate ability to evaluate economic theory and real world applications
in the context of equity considerations

These learning outcomes support development of the following Graduate Capabilities:
• Engaged and Ethical Local and Global citizens
• Discipline Specific Knowledge and Skills
• Problem Solving and Research Capability
• Effective Communication

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SUBMISSION :ECON111 Microeconomic Principles Assignment

• No extensions will be granted except in cases where an application for ‘Disruptions to
Study’ has been approved.
• Late submission will incur a penalty of 10% per day of total available marks.
• Submissions will not be accepted beyond 96 hours past submission deadline.

PLAGIARISM

• Avoid plagiarism. The consequence of plagiarism is zero mark.
• You may work with other students at the preparatory stage. However, the final
version of the assignment should be written in your own words.
• Note that Turnitin will compare your submission against others’ as well as internet
sources.

DOCUMENT PREPARATION CHECKLIST

All questions are answered with the working and reasoning where needed.
All written answers are typed using a Word Processor (e.g. MS Word).
All answers are presented in the sequence of the questions in the assignment.
All answers are written in full sentences and in clear language.
All answers are proofread and grammatical errors and typos are minimised.
The answers are written under the word limit where applicable.
All diagrams are drawn clearly and fully labelled, as I am aware that poorly drawn
diagrams reflect poor communication, which may result in loss of marks.
[If computer-drawn, e.g. MS Word, PowerPoint, OneNote] Diagrams are not distorted
and properly inserted into the master document.
[If hand-drawn] Diagrams—scanned or taken photos of—are properly inserted into
the master document as image files.
I have read the assignment rubric (available on iLearn) and made sure that my
answers are up to the criteria.
The master document is saved as a pdf file of a size less than 40MB, as I am aware
that Turnitin may distort diagrams and the text in non-pdf files.

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PART 1 (32 MARKS)
Suppose that the market for unskilled labour is a competitive market and can be described
by the following demand and supply curves:

? = 60,000 – 5,000?
? = 5,000? – 35,000

? is wage rate per hour for labour; ? and ? are demand and supply for unskilled labour,
both measured in hours.

Answer the following questions. Present your working and reasoning where needed.
Answers without working or reasoning will result in loss of marks.

Q1. [4 marks] Calculate the equilibrium wage rate and quantity of labour employed and
draw a diagram to illustrate your answer.

Q2. [4 marks] Show on the same diagram and calculate the size of the:

a) Consumer/firm surplus
b) Producer/worker surplus
c) Total Surplus

PART 2 (12 MARKS)

Consider the market for pocket calculators that is initially in equilibrium at a price of $20.00 per calculator and 10,000 calculators are exchanged per week. Then the demand for pocket calculators increases because consumer incomes increase from $800 per week to $900 per week, so that at a price of $20.00 per calculator the demand for calculators rises to 12,000 calculators. This results in a new equilibrium in the market for pocket calculators at a price of $24.00 per calculator and 11,000 calculators exchanged per week.

Answer the following questions. Present your working and reasoning where needed.
Answers without working or reasoning will result in loss of marks.

Q1. [4 marks] Draw a diagram representing what has happened in the market for pocket
calculator.

Q2. [4 marks] Using the mid-point method, calculate the income elasticity of demand
between pocket calculators and consumer income. What does this tell you about the
relationship between pocket calculators and consumer income?

Q3. [4 marks] Using the mid-point method, calculate the price elasticity of supply for pocket calculators. Interpret the result.