Assessment 1- Report: Microeconomics – ECON6000 Word limit: 2500 words

Week due: End of Week 6 (12 July 2020)

Weighting: 40%

Please read all the instructions given below very carefully and then answer the questions

Business report guidelines

• Covering page – ensure you include your name, Student ID and word
• Executive
• Table of Contents (use the Word automatically generated table of contents).
• Body of report with answers to each of your questions, including headings for each question and part of
• References: when you use another person’s wording or another person’s idea you need to include an in-text or embedded reference and then include the full reference in the Reference List. Refer to the library’s online referencing guide: https://library.torrens.edu.au/academicskills/apa/tool
• Ensure that your report contains a minimum of six academic references (standard websites are accepted; blogs are not to be used to support your answer).
• Use APA 6 reference
• Use a minimum 11 point
• Use page
• Appendices (only if required).

The weighting on the marks are evenly distributed, but we mark according to the rubric, which is:

• Effective explanation of the concepts covered to demonstrate understanding and knowledge of the core areas of Microeconomics (30%)
• Application of core concepts (25%)
• Quality of the answers (20%)
• Managing Time (25%)

Table of Contents

Ensure you use the Word automatic table of contents with style guides.

Guide to constructing a Table of Contents: https://learning.linkedin.com/blog/design- tips/the-wicked-easy-way-to-create-a-table-of-contents-in-word

Guide to using heading styles: https://support.office.com/en-us/article/add-a-heading- 3eb8b917-56dc-4a17-891a-a026b2c790f2

Page numbers

Page numbering starts after the table of contents (i.e. page 1 will contain your first answer). You should not have a page number on your covering page.

Your table of contents page should have the roman numeral “i”.

Guide to page numbering: https://support.office.com/en-us/article/Start-page-numbering- later-in-your-document-c73e3d55-d722-4bd0-886e-0b0bd0eb3f02

Assessment 1 – T2 2020:

Because of the quarantine restrictions due to Covid-19, there has been a considerable loss of employment in Australia. The standard of living for many Australian residents has been affected. House prices have decreased by approximately 30% in the major states of

Australia. It appears that the housing market has become a buyers’ rather than a sellers’ market.

Question 1:

1. Does the Australian housing market favour buyers or sellers in the Australian states and Territories? Is the change widespread across Australia? Do individuals now have buying power in the housing market, given the current tight household economic conditions? Provide evidences and diagrams to support your

Question 2:

2. Will decreasing house prices affect the supply of and demand for housing in Australia and how will this impact price elasticity of demand for housing? Explain using diagrams to support your

Question 3:

3. Will the consumer’ welfare increase or decrease due to this change in the housing market? Will there be a loss of welfare? Who would the change affect more? Will offering subsidies or grants cause a change in supply and demand in the housing market, irrespective of whether it is a buyers’ or a sellers’ market? Use appropriate diagrams whilst explaining your