HI5003 Business Economics Assignment

HI5003 Business Economics Assignment

HI5003 Business Economics Assignment

Introduction

This program has been executed over the topic Demand and supply of certain resources in Australia and factors except which affect demand and supply. Demand and supply are two important aspects which affects the economy of a country. Demand can be understood as the quantity of the goods or services or resources desired and purchased by the consumers at a given price. And supply can be understood as the quantity of the goods or services or resources offered in the market at a given price. Demand and supply of the different resources are different depending upon the availability of the resourcesand needs or wants of the consumers for the goods or services also affects the demand and supply of the resources. There are various factors available in the environment which affects the demand and supply of a resource which includes the income of the consumers, cost of the raw material, cost of the factors of production, technology, policies of the government, availability of the substitutes in the market and inferior goods. This program discusses the demand and supply of resources in Australia so as to develop a proper understanding of the both the aspects in a better manner. It also discusses the factors expect the price of the resources which affects the demand and supply of the resources in the Australian market.

HI5003 Business Economics Assignment

Analysis of the demand and supply of certain resources in Australia

There is a need of different resources for the purpose of production of the goods and services. Analysis of the demand and supply of the resources helps in the identification of the quantity of the resources which is required. There are various factors which affects the analysis of the demand and supply of the certain resources in Australia. There is a need to create a balance between the supply and demand of the product so as to reach at the equilibrium point and to utilise the resources in an effective manner. When the supply will be less than the demand of the resources then it will lead to rise in the prices of the resources and when the supply will be more than the demand of the resources then it will result in fall in the price of the resources (Sahin, et. al., 2015).There are various factors which affect the demand and supply and change in these factors result into change in the demand and supply and demand curve and supply curve. There are different types of resources available in Australia including human resource, agricultural resources, raw material for the production of products or services and mining resources. The change in these factors affects the demand and supply of the resources in Australia (Cook, et. al., 2013).

For an example: change in the availability of the human resource in Australia affects the production process of the products or services produced in Australia. For the production of the products or services for the consumption of the consumers there is a need to use skilled, semi-skilled and unskilled human resource which converts the resources into the products or services. Shortage of the required type of human resources will result in increase in the wage rates of the work force and excess of the required type of human resources will result in decrease or fall in the wage rate of the work force.

There are various factors except price of the resources which affects the demand and supply of the resources. These non-price factors which affect the demand are as follows:

Level of disposable income: the level of income of the individual affects the demand of the resources as the high level of disposable income will result in increase in the demand of the consumers for the resource and low level of disposable income will result into decrease or fall in the demand of the consumer for the resource.

Taste and preference: the taste or preference or trend also creates an impact over the demand of the consumer for the resource. The taste and preference of an individual cannot be predicted with certainty (Bae, et. al., 2012).

Demographic factors: the size and age of the consumers also affects the demand of the resource of a particular resource. For an example: the large number of young people will demand the gadgets of advanced technology which enhances the use of technological resources.

Substitute resources: the availability of the substitutes of a resource affects the demand of a resource as the consumer start demanding for the substitute resources due to the difference in the price or quality of the resource (Wallsten, 2016).

The non-price factors which affect the supply are as follows:

Technology: the change in the technology used for the resources affects the supply of the resources. For example: improvement in the technology used for the resources leads to increase in the supply of the resource in the Australian market.

Cost of factors of production: the factors used for the production affects the supply. As higher the cost of the factors of production will affect the production process and fall in the supply of the resources in the market. On the other hand, low cost of the factors of production will lead to increase in the supply of the resources in the market.

Government policies: increase in the taxes charged by the government will result in decrease in the supply of the resources and decrease in the taxes charged by the government will result in increase in the supply of the resources.

Conclusion

This program has been carried out so as to analyse the demand and supply of the certain resources in Australian market and the factors expect price of the resources which affects the demand and supply of the resources. There are various factors which affects the demand and supply and these factors include the policies framed by the government, technology used for the resources, cost of the factors used for the production of the resources, cost of the raw material, substitutes of the resources and the income of the consumers.

References

Bae, S., Gen, S. & Moon, S. 2012, "Institutional, geographic, and facility factors affecting differences in prices for wastewater services", The Annals of Regional Science, vol. 49, no. 3, pp. 767-788.

Cook, S., Sharma, A. & Chong, M. 2013, "Performance Analysis of a Communal Residential Rainwater System for Potable Supply: A Case Study in Brisbane, Australia",Water Resources Management, vol. 27, no. 14, pp. 4865-4876.

Sahin, O., Stewart, R.A. & Helfer, F. 2015, "Bridging the Water Supply–demand Gap in Australia: Coupling Water Demand Efficiency with Rain-independent Desalination Supply", Water Resources Management, vol. 29, no. 2, pp. 253-272.

Wallsten, S. 2016, "Is there really a spectrum crisis? Disentangling the regulatory, physical, and technological factors affecting spectrum license value", Information Economics and Policy, vol. 35, pp. 7-29.