Economics Assignment: Microeconomic Principles and Applications

This economics assignment provides comprehensive solutions to various microeconomic concepts. It begins with an analysis of opportunity cost, using a personal example to illustrate the concept. The assignment then delves into demand and supply dynamics, examining the effects of price changes and external factors like electricity prices on the solar panel market. The analysis extends to the law of demand, exploring how it applies to consumer behavior, such as Grannie Mae's apple purchases and preferences for walking aids. Furthermore, the assignment addresses market equilibrium, illustrating the impact of supply and demand shifts in the housing market of Melbourne and Sydney. It also explores different outcomes when demand and supply changes for yoga services. The assignment concludes with discussions on pricing strategies, including price elasticity of demand, and the impact of government-imposed minimum prices on the alcohol market. Finally, the assignment covers competitive markets, analyzing the effects of short-run economic losses and the long-run equilibrium adjustments within a competitive market structure.