Business Economics Assignment Sample PDF

Running head: ECONOMICS OF BUSINESS
Economics for business
Name of the student:
Name of the University:
Author note

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Table of Contents
Introduction:...............................................................................................................................2
Review of the elected article:.....................................................................................................2
The economic explanation of the nominated article:.................................................................3
Recommendation:......................................................................................................................4
Conclusion:................................................................................................................................5
References:.................................................................................................................................6

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Introduction:
Australian agricultural sector is one of the important sector of the economy that
provides 11% of the country’s GDP (Sheng et al. 2015). Recently it has been found that the
agricultural sector of the Australia has been going through the boom session depending upon
its actively performing livestock industry and through the high production of the nuts (Gray
2018). Though the economy of the Australia is mainly based on the business, mining and
service sector, however agricultural sector possess moderate amount of importance. Under
this situation this, report is aimed to analyse a recent article in this regard through utilising
the economic tool like supply and demand. Through analysing, this report will provide
various recommendations for the embracing the present situation of the agricultural sector in
future days and to conclude it will provide a summarised overview of its findings.
Review of the elected article:
This report is meant to analyse a selected article utilising the supply and demand
framework, which is based on the Australian natural resource. For this purpose, this report
has chosen the report from the Sydney Morning Herald that entails with the help of the nuts,
Australian agricultural sector has possess record tumble to the industry (Cheshire 2016).
Though analysing the report, it has been found that the agricultural sector of the economy has
grown at 8.3% annual rate during the last year and it has been expected that the agricultural
sector will reach the targeted 68.3 billion dollar with its high growth rate nuts (Gray 2018).
Among many reason, according to the selected article nut production has helped the
agricultural sector to a large extent to face the recent boom. Not only this, the report also
entails, with the rise of the agricultural industry, it has employed more than 325,000
employees depending the upon their level of expertise (Sippel 2015) As the report highlights,
there has been high amount of nut export and if the state continues is present endeavour, then

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it can become the market leader in nut production and the market will soar up to 47.7 billon
dollar
The economic explanation of the nominated article:
agricultural sector of the Australia is one of the essential sector of the economy and
considering the present rise in the production of the output of the industry as argued by the
selected newspaper, it can be argued that it has become of paramount importance, where the
economy need to perform detailed review of the market with the suitable economic model
(Azevedo and leshno 2016). Considering this benefits, this report discuss the Australian
agricultural market with the supply and demand model and the finding of the same is as
follows:
Figure 1: demand and supply framework of the agricultural sector of Australia
Source: (Created by author)
From the figure 1, it can be seen that the demand curve is downward sloping as there
will be rise in demand with fall in the price and on the other hand supply curve is upward,
because with rise in the price, suppliers will supply more amount of goods. Equilibrium

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occurs at the point, where the demand equates with the supply and it aids to determine the
equilibrium price and the quantity demanded (Gent 2018). Australian economy is presently in
equilibrium at the E1 point, where the demand and supply equates with each other. At
equilibrium point, the demand is Q1 and the price is P1 that hypothetically represent the
present market situation of the Australian agricultural sector (Pacheco et al. 2017). Now, if
there is rise in supply of the Australian agricultural output in future, then it will lead to shift
in the supply curve to the new position S2, where the new equilibrium occurs at E2. The new
equilibrium price will be much lower at P2 and the demand will be Q2, which will enhance
the producer as well as the consumer surplus, leading to rise in the overall surplus level of the
society (Gent and Seginer 2015). Moving forward, if the production rises further, it will shift
the supply curve to S3 position, where the economy will face a newer equilibrium condition,
which will provide lower equilibrium price P3 and the higher demand Q3.
Considering this, it can be stated that the demand and supply of the Australian natural
resource can easily be described by this economic framework.
Recommendation:
Considering the finding from the analysis of the selected newspaper, following
recommendations can be provided:
1. It is urgent requirement for the government to diverse their export target so as to
provide ability to withstand any fluctuation in the market condition of the selected
economy
2. Next to this it would be ideal for the government to bring in more vocational training
program for the Australian farming employee so as to allow them work as human
capital and enhance the overall performance of the agricultural sector further

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3. Thirdly, it would be ideal for the economy to embrace its agricultural output growth
with the help of the high yielding seeds because the Australian agriculture is highly
dependable upon the climatic condition
4. fourthly it would be ideal for the government to provide much amount of exposure to
its primary sector so as to enable to become competitive against the foreign traders
Conclusion:
From the analysis of the selected article it has been found that the Australian
agricultural sector has been going through boom in present days. However, considering the
dependence of the primary sector on the climatic condition, it can be stated that the boom can
be over within the next year itself. Strong performance of the livestock industry as well as
huge growth of the nut production has aided the agricultural sector to become where it is
now. the report has analysed the present market situation with the supply and demand
framework and it has found conclude d that the consumer surplus as well as the producer
surplus has been enhanced due to the rise in the production that has caused in fall of the price
of the agricultural products. To conclude the report has provided various recommendations
that will be able to embrace the recent growth and make it sustainable in coming days.

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References:
Sheng, Y., Zhao, S., Nossal, K. and Zhang, D., 2015. Productivity and farm size in Australian
agriculture: reinvestigating the returns to scale. Australian Journal of Agricultural and
Resource Economics, 59(1), pp.16-38.
Gray, D. (2018). World goes nuts for Australian agriculture as records tumble. [online] The
Sydney Morning Herald. Available at: https://www.smh.com.au/national/world-goes-nuts-
for-australian-agriculture-as-records-tumble-20170306-guruhc.html [Accessed 25 Apr.
2018].
Sippel, S.R., 2015. Food security or commercial business? Gulf State investments in
Australian agriculture. The Journal of Peasant Studies, 42(5), pp.981-1001.
Cheshire, L., 2016. Governing rural development: Discourses and practices of self-help in
Australian rural policy. Routledge.
Azevedo, E.M. and Leshno, J.D., 2016. A supply and demand framework for two-sided
matching markets. Journal of Political Economy, 124(5), pp.1235-1268.
Gent, M.P., 2018. Dynamic Carbohydrate Supply and Demand Model of Vegetative Growth:
Response to Temperature, Light, Carbon Dioxide, and Day Length. Agronomy, 8(2), p.21.
Gent, M. P. N., & Seginer, I. (2015, October). Dynamic carbohydrate supply and demand
model of vegetative growth. In V International Symposium on Applications of Modelling as
an Innovative Technology in the Horticultural Supply Chain-Model-IT 1154 (pp. 73-82).
Hoskovec, J.M., Bennett, R.L., Carey, M.E., DaVanzo, J.E., Dougherty, M., Hahn, S.E.,
LeRoy, B.S., O’Neal, S., Richardson, J.G. and Wicklund, C.A., 2018. Projecting the supply
and demand for certified genetic counselors: A workforce study. Journal of genetic
counseling, 27(1), pp.16-20.

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Pacheco, M., Sharif Azadeh, S., Bierlaire, M. and Gendron, B., 2017. Integrating supply and
demand within the framework of mixed integer linear problems. In 21st Conference of the
International Federation of Operational Research Societies(No. EPFL-TALK-231771).