logo

PRBE00 Economics For Managers Assignment

   

Added on  2020-05-04

7 Pages1044 Words70 Views
Running head: ECNOMICS FOR MANAGERECNOMICS FOR MANAGERName of Student:Name of University:Author Note:
PRBE00 Economics For Managers Assignment_1
1ECNOMICS FOR MANAGER: ASSIGNMENTANSWER-1:The elasticity of different food category clearly reveals that people crave for unhealthyfoods like sweets and sugar based snacks as they have lower elasticity reflecting inelasticdemand. That is for one unit change in price the amount change in demand would be less thanone unit. This kind of demand creates more burden on consumers when the goods are taxed(Stiglitz and Rosengard 2015). Hence imposition of tax can be good way to reduce consumptionof this food category that contributes to diabetes, obesity and associated heart diseases andcancer. The subsidy on the other hand makes the per unit price of the product lesser as theconsumers now pay lesser and government pays part of the price. The data reveals that highcalorific fruits and vegetables are more elastic, which further means for one unit fall in price,demand for that would rise by more than one unit. This suggests that government should go for apolicy mix that not only imposes tax on the unhealthy food categories but also provide subsidyon the healthy food category. This would discourage the consumers and make the consumersshift toward good habit of food dropping the junks.
PRBE00 Economics For Managers Assignment_2
2ECNOMICS FOR MANAGER: ASSIGNMENTConsumers’ BurdenSellers’ PriceSubsidy PQQPEESDDSTax Vs SubsidyProducers’ BurdenTax imposed S1S1Inelastic DemandElastic Demand(Source: Author)ANSWER-2:a)The simple idea here refers to the fact that when an economy fall sunder the trap ofeconomic downturn, expanding the demand of the economy is best short run solution assuggested by J.M. Keynes. Demand side economy is under the focus compared to thesupply side of it as explained by classical economists. Expansion in demand can bebrought through two channels. One is increase in the government expenditure and other isdecrease in rate of interest operative through expansionary fiscal and monetary policy.
PRBE00 Economics For Managers Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Economics Assignment on Price Elasticity
|6
|988
|170

Assignment Managerial Economics
|7
|1139
|62

BUS702 Economics for Managers - Assignment
|7
|858
|87

Economics for Managers: Fiscal Policy and Impact of Food Taxes and Subsidies
|3
|658
|288

Assignment on Economics for Manager: BUS702
|8
|918
|120

BUS702 : Economics for Managers
|4
|786
|61