Business Economics Assignment 2022

Running head: BUSINESS ECONOMICS
BUSINESS ECONOMICS
Name of the Student
Name of the University
Author Note

BUSINESS ECONMICS1
Table of Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................2
Impact of the outbreak of Middle East hostility on Petrol and Passenger Cars..........................2
Impact of releasing Electric Cars at affordable price..................................................................4
Question 2........................................................................................................................................5
Effect of the Government Policy to encourage young people to attend Universities..................5
Long-term determinant of economic growth and the ways by which government influences the
growth..........................................................................................................................................7
Question 3........................................................................................................................................8
Imposition of Tax........................................................................................................................8
Market Structure in the Australian Supermarket sector..............................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

BUSINESS ECONMICS2
Introduction
The assignment focuses on investigating the consequence of the outbreak of Middle East
hostility on petrol and petrol running passenger car markets of Australia. It also examines the
impact of releasing latest Electric cars at affordable price on Petrol cars market. The effect of the
government policy of educating the young workforce on output and Australian economy is
critically evaluated. Long term determinants of economic growth and the ways of influencing the
economic growth by government are discussed broadly in this paper. Finally the assignments
aims at finding out the impact of tax imposition on cigarettes and coffee consumption along with
understanding the market structure of Australian supermarket.
Question 1
Impact of the outbreak of Middle East hostility on Petrol and Passenger Cars
The outbreak of Middle East hostility is expected to drive up the oil price in the global
market. With the increase in global oil price, the price of petrol will also rise in Australia. The
impact of the upsurge of the petrol price in Australian market for petrol and passenger cars with
large engines that run on petrol is depicted in the diagrams (Figure 1 and Figure 2) below.

Q* Q Quanti
ty
Pric
e
D
*
S
*
S
P
P
*
BUSINESS ECONMICS3
Figure 1: Australian market for Petrol
Source: Created by Author
From figure 1 it becomes clear that the rise in the price of petrol in Australia from P to P*
will shift the supply curve (S) leftward to S* which in turn will reduce the quantity of petrol
supplied by the extent (Q-Q*) in the Australian Market (Pindyck and Rubinfeld 2015).