How much sustainability do you suppose exists between inputs in wine-making?

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For further information on plagiarism and how to avoid it, please refer to the
university policy about academic honesty and integrity.
Submission:
In the lecture class on Monday 18 January OR email to me at ha.vu@mq.edu.au before
9am Monday 18 January.
No extensions will be granted. Students who have not submitted the assignment by the
deadline will be awarded a mark of ZERO, except for cases in which an application for
Disruption to Studies is made and approved.
2
Question 1 (10 marks)
Read the article “Croissantonomics” and use the demand and supply model with graphs to
demonstrate the changes in the market for croissants at different times of the year. Briefly
explain.
Question 2 (10 marks)
Read the article “MH370 deep in minds of Australians, Malaysia Airlines CEO Christoph
Mueller says” and discuss the consumer choice of airlines. Are Malaysian Airlines tickets
normal (or luxury), or inferior goods? Use a graph to show the substitution and income
effects of a decrease in the price of Malaysian Airlines ticket.
Question 3 (10 marks)
Read the article “Privatization of state-owned electricity assets” and answer the following
questions:
(i) Draw a graph representing the profit of electricity companies before privatization.
Briefly explain.
(ii) Draw a graph representing the profit of electricity companies after privatization
which leads to increased competition. Briefly explain.
Question 4 (20 marks)
Read the article “Whats Behind the Bottle Price” and answer the following questions:
(i) How much sustainability do you suppose exists between inputs in wine-making?
How might this factor affect efforts to cut costs?
(ii) If a firm was to find a new technology that cut the required ageing time in half, how
would it affect the demand for other inputs?