Bsb113 Economics - 1491 Words

Research Summary Research Summary BSB113 BSB113 Tutor: Thamarasi Kularatne Tutor: Thamarasi Kularatne Student Number: N9138587 Student Number: N9138587 Carson Ly Carson Ly Due Date: September 26 2014 ndjdcjjdjdj2012012222014 Due Date: September 26 2014 ndjdcjjdjdj2012012222014 Smoking is recognised as the largest single preventable cause of death and disease in Australia. It is associated with an increased risk of heart disease, stroke, cancer, emphysema, bronchitis, asthma, renal disease and eye disease. Tobacco contains the powerfully addictive stimulant nicotine, which can make smoking a regular and long-term habit that is not easy to quit (Australian Bureau of Statistics, 2014). Statistics show†¦show more content†¦A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low (Taylor, B. 2006). Figure 3 Figure 3 S Price floor Price floor Price Price D Quantity Quantity Q2 Q1 Price floors is a strategy that can be quite useful, with many positives outcomes from it, but also there are a few negative outcomes. The government use price floor to prevent people from buying certain products as frequently and also to decrease certain products demand. Goods such as cigarettes have a price floor, which is why the price for cigarettes will always be above equilibrium, and will only increase in price over the years. This could be considered an advantage and also a disadvantage for some. Price floor has positive outcomes especially for the government and also lowers the death/illness rate caused by smoking. A negative outcomes may affect the suppliers, due to the fact they can no longer set the price for the product, which will cause the quantity supplied to be greater than the quantity demanded, this is known as a surplus (shown in figure 4). Due to the price being constantly above equilibrium, the money that is made may be the same as previously when t he price floor did not exist, or possibly more. Although price floorShow MoreRelatedBrazilian Government Intervention: Acai Berry Essay examples996 Words   |  4 Pagesbe unable to afford acai. Free markets are considered inequitable because of the lack of equality; if the government were to intervene they would promote equity. The Brazilian government could stabilise the economy and lower inflation and promote economic growth (Coglan, 2013, pg312). â€Æ' The export tariff is something that the Brazilian government should consider as a possible solution. By imposing an export tax fewer companies will export acai; preferring the tax free domestic market. This will shift