Explain in a detailed manner with suitable graphs for BLAW1002 S1 2025 - EPA BriefA. Context and Overview'Assessment 2' is the Economics Principles Analysis (EPA),worth 30% of the final mark.It is a 'take-home' activity, consisting of a set of tasks to do in short-written answers.This EPA assessestheEconomics Topics E1 (Module 6) and E2 (Module 7).You will have up totwenty-three (23) days to complete the EPA on your own.Timeline of EPA-specific events (local time in year 2025AD):1. Assessment briefavailableon Blackboard (Bb):9thApril, 9pm.2. Submit to Turnitin by the official due date: 2nd May, 11:59pm.3. ETA of marks/feedbackon your EPAin Grade Centre is by 23rd May, 9pm.Key assessment information: EPA consists oftwoquestions:Q1- 15 marks; Q2- 15marks. For supportinginfo on EPA, refer to following PDFs, available in Assessments tab on Bb:1) EPA Brief S1 2025 [this document]2) Marking Guidance and FAQs for EPA S1 2025 Your answers need to be typed, but diagrams must be hand-drawn (digitalinking using a stylus isfine) and included in the Word document or in PDF. Note, word count is a suggested maximum. The most important thing is that youspecifically answer the tasks and have sufficientexplanations and refer to key sentences and ideas from various articles* where relevant tosupport your analysis.*= the key articles are available for free online with no need for a paidsubscription - alternatively,you canaccesssomefrom Curtin's Library databases (seeFAQ#5 indoc.2).The EPA willrequiresomecritical thinking, but this is a doable assessment.A general guide on what the marker will be looking for in this assessment was provided in the tutorstudent discussions in the workshop sessionson ModulesM6, M7(especially)and M8. Your tutor as anexemplar would have gone through the process of how best to explain price elasticity of demand and thekey isoprofit diagram, and so on. The lectures onM6 andM7(especially, including the videos)shouldcome in handy as well.You are to complete the two parts of this EPA by your human self-- no need for you to share/upload it onthe web for extra help-- please no Gen-AI LLMs or other agent assistance. The lectures, set tutorialquestions, and assigned readings within this brief and from the CORE text should be sufficient resourcesfor you to draw upon to do the tasks well enough.Many thanks in advance for your cooperation, Brennan AI Tech Incorporated (BAT Inc.)IMPORTANT: When ready to submit, ONLY include answers andprepare your document as following:Full NameandStudent ID should appear on thefirst page as a title in the Word document (or PDF). Submityour file to Turnitin by the due date (see Assessments tab on Bb).1 |P a g eBLAW1002 S1 2025,EPA Assessment [30%]B. Assessment TasksQ1 - 15 MarksConsidertheconsumermarket for beverages(such as beer) in the US, as perthe followingkeyarticles:1. 2. 3. 4. https://fortune.com/2024/08/04/gen-z-sober-na-business/https://fortune.com/2024/09/14/american-beer-crisis-demand-gen-z-millennials-covid-alcohol/https://theconversation.com/the-rise-of-sober-curiosity-why-gen-zers-are-reducing-their-alcohol-consumption-243775https://www.smh.com.au/business/companies/at-30b-and-rising-alcohol-free-booze-is-becoming-big-business-20250107-p5l2pa.htmlAssumethe price of beer has increased by 15%. Explain thepriceelasticity of demand anditsimpact onrevenue for: (i) younger generations (Gen Z, Millennials); and (ii) older generations (middle-aged).In your analysis for eachgeneration(i) + (ii), do the following:a. b. c. d. Draw asinglestraight-line demand curve as either elastic or inelastic (you will have to work this out).Use hypothetical incremental valuesrough guesses from your imaginationfor the prices on the yaxis and quantities on the x-axis.Showthe workings of yourcalculation ofpriceelasticity of demand (PED).Describeand quantifywhat would happen to revenue in this case.Explainand justify withrelevantdetails on PED (i.e. why it is either inelastic or elastic) based on yourreading of the key articles.800200 or so words should be sufficientQ2 - 15 MarksConsider automotive company BYD, foundedless than 20 years agoby Chinese chemist, Wang Chuanfu.BYD is enjoying theSchumpeterian (innovation)profitsover its competitors in the past few years. BYD is theworld's largest electric vehicle (EV) maker, selling the most total vehicles (both full-electric and plug-inhybrid) mainly to middle-class consumers in China and beyond. Creative-destructive processesareatwork, and you canread more about BYD's rise in the following key articles:1. 2. 3. 4. 5. 6. 7. https://www.scmp.com/business/companies/article/3217091/china-ev-war-how-byd-grew-elon-musks-ridicule-berkshire-hathawaysridiculous-us98-billion-success-12https://www.cnbc.com/2024/01/05/how-byd-grew-from-a-phone-battery-maker-to-ev-giant-taking-on-tesla.htmlhttps://www.scmp.com/business/china-business/article/3248710/china-evs-byd-plans-us14-billion-investment-develop-smart-carsseen-next-battlefieldhttps://www.nytimes.com/2024/02/12/business/byd-china-electric-vehicle.htmlhttps://www.nytimes.com/2024/12/09/business/china-mexico-ev-electric-vehicles.htmlhttps://electrek.co/2024/12/09/byd-to-cut-ev-battery-costs-by-15-new-blade-battery/https://fortune.com/asia/2025/02/19/byd-ev-ahead-of-competition-wang-chuanfu/Demonstrate and explain what the profit of this firm might look like using akey economics diagram, asdiscussed in the economics lectures/videos and tutorials in BLAW1002 S1 2025,as perthe below:Note the following to help set upyour analysis: assumethefirm sells base models ofBYDsatthemedian profit-maximising price of$10,000. assumetheaverage costs of production is $2000 percar, whichincludes the costs of materials(e.g.components that are part of the core drive train, chassis, body, interior/exterior,etc.),labour, shipping, insurance, marketing, and other expenses/overheads. use intuition for making up the incremental prices/costs on the y-axis, andfor the incrementalquantities of monthlycar production on the x-axis, use hypothetical values (rough guesses fromyour imagination).a. b. c. d. You will hand draw the diagram, including the one (1)isoprofit curve. Be accurate when you draw yourisoprofit curve. To show to the reader that your profit is the same ('iso'), calculate and show yourworkings of what the (same) iso-profit would be for the price of $15,000 and for $5000.At the profit-maximising price, identify the areas of producer and consumersurplus, and calculatetheprice markup.Analyse and compare the profit and price markup ifincreased competition led to BYD loweringits evehiclepricesby10%,ceteris paribus.With reference to youranswerin[c], elaborateonhowthe entrepreneur at BYDcould innovate evenmore in the face of intense competition based on yourobservations fromthe key articles.800 200or so words should be sufficient