Essay Built Environment Markets – Derived Nature of Factor Input – Economics Assignment Help

Assignment Task :

Learning outcomes
1 Interpret economic data and explain price, output and profit determination in built environment markets.
2 Distinguish between the theoretical underpinnings of decisions made by owners and users of the built environment and the decisions made by those who build them.
3 Explain the derived nature of factor input demand and its role in the determination of factor prices and levels of factor employment.

Scenario
A well-known organisation runs an annual essay competition in order to promote understanding of  economics in the built environment. The instructions make it clear that the essay is intended for a general, non-expert audience.
The title for 2020 is ‘The Economics of the Built Environment’. Your Managing Director is keen for your organisation to submit an entry and knows that you are currently studying economics at UCEM.
You have therefore been asked to write the essay, based on a product (goods or service) associated with the built environment and supplied by an organisation of your choice. This may be the organisation you work for or one with which you are familiar.

Task
Write a suitable essay for submission to the competition. Your essay should explain important microeconomic concepts and theories and apply them to the organisation and the product you have chosen, which must be associated with the built environment. Suggested word counts are given for each section.
 

Your essay should include all of the following (a–h); you are advised to follow this order of presentation.
a. Briefly introduce your chosen organisation and your chosen product, describing how the product helps the organisation to achieve its main economic objectives. 
b. Identify and describe the main consumers of your chosen product, explaining the reasons for their demand for the product and giving examples of the opportunity costs when they purchase it. 
c. Explain how the demand for and the supply of a product come together to determine equilibrium price. (Your answer to this section should be general and not applied to your chosen product). 

d. Explain two non-price factors which affect the demand for your chosen product and two non- price factors which affect the supply of your chosen product. Treating each one separately, analyse how changes in each of these non-price factors over the next year might affect the equilibrium price of your chosen product. 
e. Giving your reasons, evaluate the extent to which the demand for your chosen product might be relatively price elastic or relatively price inelastic. Analyse the likely effect on your organisation’s total revenue, if it raises the price of the product.

f. Describe the type of market structure (type of competition) in which your organisation operates, supporting your choice of structure by referring to the specific features of your market. Explain the effect of this market structure on your organisation’s price, output and profit. 
g. Explain the derived nature of your organisation’s demand for the labour which it employs. Discuss the effects of a rise in the national minimum wage in your country on the market for your product. 
h. Finish your essay with a brief future-facing conclusion on the likely prospects of your chosen product over the next year. This conclusion should not simply repeat what you have already said but should draw together the threads which you have considered in the essay.