The assignment task is a written analysis of any published news story regarding the Australian Market (newspaper, magazine or website) from 01 May 2021 and onwards. Your task is not to research and provide data. You are instead asked to analyse an ordinary event using your knowledge of economic principles. You will be required to apply the economic concepts you have learned to interpret events reported in your news story.

Refer to the below table for the specific task details and some guide questions for your analysis.

Recommended Assignment Structure

Requirement/s and Guide Questions

Event/Product/Company Description (3 marks, up to 250 words)

a)Elaborate on the event being reported in your chosen article.Why did you choose to analyse this event?

b)What are the products and services being sold?What is the significance to the Australian Economy of the product/service?

c)Who are the parties involved?Identify who is the supplier and who is the consumer in the event.

Microeconomic Analysis (Part 1)

Demand and Supply (7 marks, up to 1000 words)

In this part of your paper, you are required to discuss the Demand and Supply interactions.

a)What are the Determinants of Market Demand for your chosen event?How do these determinants affect Total Demand?

b)What are the Determinants of Market Supply for your chosen event?How do these determinants affect Total Supply?

c)Who has power in the market?Analyse any shortage or surplus situation, if applicable.

d)Characterize the elasticity of the product being analysed.Who bears the cost of any price increase?

Industry Description and Market Structure Analysis (5 marks, up to 500 words)

a)Characterize the size of the industry and the level of competition.

b)Identify the Market Structure in the industry.Discuss how market structure influences the prices in the industry.

c)Identify the regulator/s of the industry.Comment on the extent of the regulator's power to ensure compliance within the industry.

d)Are there any industry groups that help regulate behaviour aside from regulators?

Externalities (5 marks, up to 500 words)

a)Aside from the initial buyer and seller that you have identified, are there any 3^rd parties affected by the economic event?

b)Describe the impact to the 3^rd party.Is it negative or positive?

c)What other actions or behaviour is triggered by the impact to the 3^rd party?What solutions are applied for the externalities you have identified?

Findings, Conclusion and Recommendations (3 marks, up to 250 words)

Based on a summary of your findings, comment on the economic health of the industry (microeconomics) and the economy as a whole (macroeconomics). What further recommendations from regulators and industry experts can be applied to sustain the health and development of the industry and the country? Do you agree with these recommendations?State why or why not.

Presentation of Paper (including Assignment Cover Page and Reference List) - 2 marks and not included in word count

Example for Students:

Note that the example provided is in draft form. Bullet points indicate the topics that need to be elaborated on. You will need to write paragraphs.This is a structure for an analysis.

Article : 2020 Olympics Delayed to 2021 (ensure to have a copy of full article in the appendix) Publish Date:15 April 2020Published In: Indicate the source

MICROECONOMIC ANALYSIS

Event/Product/Company Description

a)Elaborate on the event being reported in your chosen article.Why did you choose to analyse this event?

Olympics is a worldwide event that happens only every 4 years.

I choose this event because I am interested to analyse why countries would spend money and resources to hold such an event.

b)What are the products and services being sold?What is the significance to the Australian Economy of the product/service?

Product/Service - Sports, Entertainment/Media, Travel, Hospitality

Australia sets aside a significant budget for the development of athletes and sports organizations to represent the country.

c)Who are the parties involved?Identify who is the supplier and who is the consumer in the event.

Supplier - International Olympic Committee but primarily the host country which is Japan for 2020.

Consumers are varied: 1) Countries sending athletes, 2) Athletes competing, 3) Entertainment and media who will cover the event, 4) Arline operators and travel agencies who will book travellers, 5) Hospitality sector who will prepare accommodations and food for all travellers.Many more can be identified. Microeconomic Analysis

Demand and Supply

In this part of your paper, you are required to discuss the Demand and Supply interactions.

a)What are the Determinants of Market Demand for your chosen event?How do these determinants affect Total Demand?

Price - includes price of event tickets, price for airfare, price for accommodations.Normal law of demand applies here.

Income - attendees to the event may end up not going if they do not have steady income because of corona virus.

Taste and Preferences - If the new date chosen does not fit into the holiday plans, some travellers will not go anymore in 2021.For athletes, if they still have enough time to train, then they will go.But some may withdraw because of the change of date.

Availability of Related Products - There is no substitute for Olympics as a sport event.There may be room to increase prices to maintain the revenue goal if the quantity is not enough.There are many complementary products - travel, accommodation, event souvenirs, etc.

Price and Income Expectations - People generally expect a certain range for ticket prices.With the corona virus, will price expectations be higher or lower? Why?

Number of Buyers - Because many countries worldwide have been hit by corona virus, they may reallocate their funds to other essential activities and not send their athletes to the Olympics even if it is rescheduled to 2021.

b)What are the Determinants of Market Supply for your chosen event?How do these determinants affect Total Supply?

Resource Prices - Analyse costs involved to hold Olympics. Check Japan's budget to hold Olympics.This will factor in the selling price for the event tickets.

Number of Sellers - There is only 1 seller: Japan.No other country can hold Olympics 2020.

Technology - The ability to hold Olympics depends on cooperation of media and event organizers and the cost to build the technology.This means tech for prompt scores, monitoring finish times at the millisecond, etc.

Price and Economy Expectations of Sellers - The price of event tickets and media subscription for livestream of the event will depend on the costs for Japan, its target profit and how many people are expected to come.

Time - Given the corona virus predictions, there is very little time to adjust.Also, since all venues (stadiums and sports complex) plus accommodations have to be pre-booked, it will mean informing the public ahead of what happens to any reservations paid for in advance.

c)Who has power in the market?Analyse any shortage or surplus situation, if applicable.

Only 1 supplier - Japan so monopoly.In a normal situation, Japan can dictate the price and go on with the scheduled event.But because corona virus affects the whole world, Japan now has to consider safety of all travellers and athletes. So it has to postpone the event and forego its projected profit for 2020.It hopes to recover this profit in 2021.

d)Characterize the elasticity of the product being analysed.Who bears the cost of any price increase?

Because Olympics is a monopoly, any price increase will have to be borne by the consumers - those who want to attend the event.In this scenario, demand is inelastic.

But the supplier (Japan) must be conscious of a possible decrease in demand due to the corona virus.People may not want to travel. So the original inelastic demand can shift to being elastic.Japan bears risk if it does not postpone the games to 2021.

Industry Description and Market Structure Analysis

a)Characterize the size of the industry and the level of competition.

Monopoly so no competition for Japan as supplier.

b)Identify the Market Structure in the industry.Discuss how market structure influences the prices in the industry.

Expand on characteristics of Monopoly

c)Identify the regulator/s of the industry.Comment on the extent of the regulator's power to ensure compliance within the industry.

Regulator is IOC (International Olympic Committee).They have power to override Japan's decisions to hold the games, if required.

d)Are there any industry groups that help regulate behaviour aside from regulators? Other interest groups are various sports associations of the participating countries, media covering the event, association for referees and umpires, etc.

Externalities

a)Aside from the initial buyer and seller that you have identified, are there any 3rd parties affected by the economic event?

External parties affected - Athletes, Entertainment/Media companies, Travel - airlines,

Hospitality - hotels and many more

b)Describe the impact to the 3rd party.Is it negative or positive?

Discuss the possible negative or positive effect for each of the above.

c)What other actions or behaviour is triggered by the impact to the 3rd party?What solutions are applied for the externalities you have identified?

Governments of some participating countries declared their non-participation if 2020 schedule pushes through. No subsidy by governments for athletes.Check for other support given to each of the 3^rd parties identified.

Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.