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BUS702 Economics for Managers - Assignment

   

Added on  2020-05-04

7 Pages858 Words87 Views
Running head: ECONOMICS FOR MANAGERSEconomics for ManagersName of the StudentName of the UniversityAuthor note
BUS702 Economics for Managers - Assignment_1
ECONOMICS FOR MANAGERS1Table of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................3Answer a......................................................................................................................................3Answer b......................................................................................................................................4Answer c......................................................................................................................................4Answer d......................................................................................................................................5References........................................................................................................................................6
BUS702 Economics for Managers - Assignment_2
ECONOMICS FOR MANAGERS2Answer 1The unhealthy food habits increases government expenditure on health and services. Toaddress this use the tools of subsidy and tax should be used in combination (theconversation.com2017). Subsidy and taxes though both has distortionary effect but both can alters buying habit bychanging prices paid by the consumers and that received by the sellers. First, consider the effectof taxation on unhealthy food like sweet and sweet beverages. Figure 1: effect of tax on unhealthy foodThe own price elasticity estimate for sweet and sugar snacks are -0.270 and -0.295 for high andlow calorie sweet and sugar snacks respectively. Therefore, the demand is inelastic in nature andhence, the demand curve is steeper. Before the imposition of tax P* and Q* denotes the
BUS702 Economics for Managers - Assignment_3

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