I prefer the use of footnotes instead of in text citation. The maximum amount of words that are to be written for this essay is 1250.The essay must be written using proper grammar, formatting and referencing. I have copied and pasted the assignment instructions below.
Read the article titled “Free-range egg shortage in Australia set to last two months” (by Liam Mannix, Source: The Sydney Morning Herald, Date: June 7, 2016) and provide the answers to the following questions.
1. Assuming eggs are produced in a competitive market, use demand and supply models to explain and illustrate why the price of free-range eggs is expected to rise. Be sure to clearly explain any assumptions you make and articulate the determinants that lead to the change (7 marks)
2. Drawing on the determinants of price elasticity of demand, explain whether the demand for free-range eggs is elastic or inelastic. Illustrate the effect of price rise on the total revenue of an egg producer who has already met all regulatory requirements for producing free-range eggs. (7 marks)
3. Considering the free-range egg market in SA, assume that the state government has decided to intervene and introduce a price ceiling on prices. Explain and illustrate the likely impact on the market for free range eggs and discuss whether the outcome is efficient from the perspective of consumer?s and producer?s surplus. (8 marks)
I will upload the document that is relevant for this assignment. You will be able to find and read the article titled “Free-range egg shortage in Australia set to last two months” (by Liam Mannix, Source: The Sydney Morning Herald, Date: June 7, 2016.