ASSESSMENT BRIEF

Title and Code of Minor Award: Economics 5N1350

Class: BC1, BC2, BCL, BCF, ML1, ML2, LAC
Title: Microeconomics
Assessment No. and Technique: #1 Assignment Weighting (%): 30%
Issue Date: 24th October 2022 Submission Date: 12th December 2022
Feedback Date: Teacher Name: Kara Cramp

Learning Outcomes: 2, 8, 12, 13, 14

Learner Name (Print): Britney Stewart

I confirm that I have kept a copy of my work and that this is my own original work.
Signature: Britney Stewart

Assessment Criteria Max. Mark Learner Mark

Relevant information collected and appropriately presented 5
Understanding and knowledge of microeconomic concepts and theories clearly 20
demonstrated and appropriately applied.
Comprehensive evaluation of topic completed 5
Subtotal 30
Marks deducted for Late Submission:

Total Mark: Mark is provisional and subject to change by the external authenticator.

Teacher Feedback: It is the learner’s responsibility to be in class when feedback is being given.

Strengths:

Areas for improvement:

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Presentation Guidelines:
Complete the booklet and fully-word process the document.
Graphs can be hand-drawn and inserted as images, or other software can be used to insert graphs,
some may be referenced from digital sources if necessary and inserted as an image-all must be
referenced, full marks will be only awarded for graphs completed by the student.
Reference throughout the document and at the end with a bibliography-use Harvard Referencing style
should be used.
The brief cover page and marking scheme are to be attached to the front of the assignment.

Context:
“For an economy to function, producers must supply the goods that consumers
want. ‘Supply’ refers to the amount of goods a market can produce, while
‘demand’ refers to the amount of goods consumers are willing to buy. Together,
these two powerful market forces form the main principle that underlies all
economic theory”
http://www.whatiseconomics.org/the-law-of-supply-and-demand/
For this assignment you are asked to show your understanding and knowledge of
microeconomic theory and concepts by applying these theories to a chosen
economic good (product or service). Use the same good throughout the
assignment.

Introduction
Pick a good to do your assignment on. The good can be a product or a service.
Give details of your chosen good; include details such as: price, size, possible
substitutes and/or complements, marketing/advertising campaigns. In all of the
questions you need to apply micro-economic theory to your chosen good.

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 Tasks:
Learning Outcome 2
Examine the key factors determining supply and demand and their impact on market price
and production
Learning Outcome 12
Construct demand and supply curves
Demand
1. a) State and explain the Law of Demand
The law of demand is a fundamental principle of economics that states that
at higher chargers, buyers will demand a lower amount of products.
Formula for law of demand is stated below,
Qx = f(Px;Y)

b) List and explain FOUR factors that may affect demand for your good
2. a) Explain the difference between a movement along the demand curve and a
shift in a demand curve
b) Use a diagram to clearly show a movement along the demand curve
c) What will cause a shift to the right of the demand curve for your good? –
give two examples
d) Use a diagram to clearly show and explain a shift to the right in the
demand curve.
e) What will cause a shift to the left of the demand curve for your good? –
give two examples
f) Use a diagram to clearly show and explain a shift to the left in the demand
curve.

Supply
3. a) State and explain the Law of Supply
b) List and explain FOUR factors that may affect supply for your good.

4. a) What will cause a movement along the supply curve for your good? – give
one example
b) Use a diagram to clearly show a movement along the supply curve
c) What will cause a shift to the right of the supply curve for your good? –
give two examples
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 d) Use a diagram to clearly show a shift to the right in the supply curve.
e) What will cause a shift to the left of the supply curve for your good? – give
two examples
f) Use a diagram to clearly show a shift to the left in the supply curve.

Learning Outcome 8
Analyse the impact of a variety of changes in supply, demand, and market equilibrium.
Equilibrium
5. a) Draw a diagram of the market for your good in equilibrium.
Show and explain the effects on price, quantity demanded and quantity
supplied when the demand curve shifts to the right
b) Draw a diagram of the market for your good in equilibrium.
Show and explain the effects on price, quantity demanded and quantity
supplied when the demand curve shifts to the left

Elasticity
6. a) Briefly explain what is meant by the term ‘Price Elasticity of Demand’
b) Do you think that demand for your good is likely to be price elastic or price
inelastic? Explain your answer. Include reference to the factors affecting
price elasticity of demand in your answer

Learning Outcome 13

Calculate marginal, average, and total costs.

Costs
7. Outline a fixed and variable costs the sellers would have come across
when selling your chosen product?

8. The table below shows the short run production costs for a small firm
producing a product.
Complete the cost calculations in the table.

 Output Total Fixed Total Total Average Marginal

Costs (TFC) Variable Cost Cost Per Cost
Costs (TVC) Unit
0 200 0 200 0 0
50 200 400 600
100 200 950

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 150 200 1400
200 200 1800
250 200 2500 10.8 14

Learning Outcome 14
Critically evaluate a variety of market structures, such as perfect competition, imperfect competition,
monopoly, and oligopoly.

Markets
9. Which market structure (perfect competition, monopolistic competition,
oligopoly or monopoly) applies to your chosen good?
Write 3 bullet points justifying your choice of market structure.

10.Compare TWO market structures of your choice under the following headings:
 the number of firms in the market
 the firm’s influence over price
 the nature of the product – differentiated or undifferentiated
 ease of entry into the market
 real-life example

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 Marking Scheme for Micro Economics Assignment (30%)

Learner Name: _______Kara Cramp__________________________________________

Maximum Marks Learner Mark

Relevant information collected and appropriately presented (5 marks)

 Well-structured assignment
2 marks
1 mark for layout and 1 mark for diagrams
 Relevant information collected
1 mark for introduction 2 marks
1 mark for other research (FC/VC)
 Citation and Referencing 1 mark

Understanding and knowledge of micro economic concepts and theories clearly demonstrated and
appropriately applied (20 marks)
 Law of Demand 1 mark

 4 factors affecting demand – 0.25 marks each 1 mark

0.5 mark cause
 Movement along a demand curve
0.5 mark diagram
 Explain 2 factors which may lead to a shift to right in the
1 mark
demand curve – 0.5 marks each
 Diagram (shift to the right) 1 mark diagram
 Explain 2 factors which may lead to a shift to left in the
1 mark
demand curve.
 Diagram (shift to the left) 1 mark diagram

 Law of Supply 1 mark

 4 factors affecting supply – 0.25 marks each 1 marks

0.5 diagram
 Movement along the Supply curve
0.5 mark cause
 Explain 2 factors which may lead to a shift to right in the
1 mark
supply curve. – 0.5 each
 Supply Diagram (shift to the right) 1 mark diagram
 Explain 2 factors which may lead to a shift to left in the
1 mark
supply curve.
 Supply Diagram (shift to the left) 1 mark diagram
 Equilibrium 2 diagrams
0.5 per diagram and 0.5 to explain effects on P and Q for 2 marks
each of 2 diagrams
 Cost Table Completion 16 x 0.25 4 marks

Comprehensively evaluate the subject matter (5 marks)

 Reasoning/Evaluation of Price Elasticity of Demand (Q6) 2 marks

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 Paragraph on the choice of market structure (Q9) 1 mark

 Market Structure Comparisons (Q10) 2 marks

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