Analysis of Fundamental Economic Principles Assignment

This economics assignment analyzes fundamental economic principles through three main questions. The first question examines the apricot market, calculating equilibrium price and quantity using demand and supply functions, determining consumer and producer surplus, and analyzing the price elasticity of demand. The second question explores the production possibility frontier (PPF), illustrating the trade-offs between rice and clothing production in China, discussing the assumptions underlying PPF construction, and analyzing the impact of technological advancements on the PPF. The third question delves into market structures, contrasting monopoly and perfect competition within the context of the Australian espresso market, examining profit scenarios, and considering the effects of government subsidies on existing firms. The assignment utilizes graphs and calculations to support the analysis, providing a comprehensive understanding of microeconomic concepts.