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Assessment item 3 back to top Assignment 3: Essay Questions Value: 20% Due Date: 12-Aug-2019 Return Date: 02-Sep-2019 Length: Approx 2,000 words each Submission method options: Alternative submission...

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Assessment item 3
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Assignment 3: Essay Questions
Value: 20%
Due Date: 12-Aug-2019
Return Date: 02-Sep-2019
Length: Approx 2,000 words each
Submission method options: Alternative submission method
Task
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Assignment 3 consists of two essay questions (worth 10 marks each) based on Text material. Before attempting this assignment you are expected to have read Text chapters 1, 2, 3 and 4. Sources used in your answer should be fully referenced in APA 6th style.
Answer the following questions ensuring that you apply economic principles or theory related to (a) the concepts of supply and demand for Question 1 and (b) the concepts of specialisation and exchange for Question 2 to inform your analysis and support your decisions. Communicate your ideas with co
ect grammar, spelling and writing style and support your answers with diagrams as necessary.
Question 1 (10 marks)
Drawing on your knowledge of the theory of demand and supply – supplemented by appropriate media reports – explain what has been happening to the price of gas in Australia over the last ten years.
Question 2 (10 marks)
Drawing on your knowledge of the theory of specialisation and exchange – supplemented by appropriate media reports – explain what the consequences of rising energy costs will be for heavy industry in Australia.
Rationale
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Subject learning outcomes
This assessment task will assess the following learning outcome/s:
· be able to apply demand and supply analysis to make a range of market related decisions.
· be able to identify and critically evaluate opportunities for specialisation and exchange.
This assignment provides an opportunity for you to demonstrate that you are familiar with the use of the model of supply and demand and concepts of specialisation and exchange.
Graduate learning outcomes
This task also contributes to the assessment of the following CSU Graduate Learning Outcome/s:
· Information and Research Literacies (Application) - CSU Graduates synthesize and apply information and data to different contexts to facilitate planning, problem solving and decision making.
Marking criteria and standards
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    Criteria
    HD (85%)
    DI (75-84%)
    CR (65-74%)
    PS (50-64%)
    FL (0<50%)
    Questions 1 and 2: Academic writing clearly communicates meaning (10% weighting).
    Language features and structures are used to convey meaning effectively, clearly, concisely, unambiguously, and in a tone appropriate to the audience and purpose with no spelling, grammatical, or punctuation e
ors.
    Language features and structures are used to convey meaning effectively, clearly, unambiguously, and in a tone appropriate to the audience and purpose with few spelling, grammatical, or punctuation e
ors.
    The text contains some e
ors in spelling, grammar, word choice, and structure, lacks clarity occasionally, and may not be concise, but the meaning is apparent to the reader with little effort.
    The text contains frequent e
ors in spelling, grammar, word choice, and structure, lacks clarity, and is not concise, but the meaning is apparent to the reader with some effort.
    Fails to meet criteria for a pass.
    Questions 1 and 2: Academic writing includes APA 6th referencing (10% weighting).
    Referencing is comprehensive, demonstrates academic integrity, and conforms exactly to APA style conventions.
    Referencing is comprehensive, demonstrates academic integrity, and conforms to APA style conventions with fewer than three minor e
ors or omissions which don't impact on the transparency and traceability of the source or the demonstration of academic integrity.
    Referencing is comprehensive and mostly accurate according to APA style conventions. Up to eight minor e
ors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity.
    Referencing is comprehensive and mostly accurate according to APA style conventions. Frequent minor e
ors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity.
    Fails to meet criteria for a pass.
    Question 1: Analyses supply and demand components to provide market related recommendations and or decisions (80% weighting).
    The answer synthesises the most important elements of the theory of demand and supply with new insights providing an in-depth application of demand and supply theory along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the co
ect decisions within the context of specific market circumstances.
    The answer evaluates the theory of demand and supply and uses the theory to analyse the question. Decisions based on analysis co
ectly reflect the options available given specified market conditions and are presented through a sound argument showing good judgement. However, minor e
ors have been found in the na
ative or use of diagrams.
    The answer co
ectly interprets the theory of demand and supply to analyse the question. Decisions based on analysis co
ectly reflect the options available given specified market conditions. However, some e
ors have been found in the na
ative or use of diagrams.
    The answer identifies the most important elements of the theory of demand and supply to analyse the question. Decisions based on analysis co
ectly reflect the options available given specified market conditions. Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn.
    Fails to meet criteria for a pass.
    Question 2: Co
ectly utilises trade theory to identify and critically evaluate if opportunities exist for specialisation and exchange (80% weighting).
    The answer synthesises the theory in relation to specialisation and exchange with new insights providing an in-depth application of trade theory along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the co
ect decisions relating to specialisation and exchange within the context of specific market circumstances
    The answer evaluates the theory in relation to specialisation and exchange and uses the theory to analyse the question. Decisions based on analysis co
ectly reflect the options available with respect to specialisation and exchange given specified market conditions and are presented through a sound argument showing good judgement. However, minor e
ors have been found in the na
ative or use of diagrams.
    The answer co
ectly interprets the theory in relation to specialisation and exchange to analyse the question. Decisions based on analysis co
ectly reflect the options available with respect to specialisation and exchange given specified market conditions. However, some e
ors have been found in the na
ative or use of diagrams.
    The answer identifies the most important elements of trade theory in relation to specialisation and exchange to analyse the question. Decisions based on analysis co
ectly reflect the options available with respect to specialisation and exchange given specified market conditions. Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn.
    Fails to meet criteria for a pass.
 
 
Presentation
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Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. Sources used in your answer should be fully referenced in APA 6th style. The answer to the question should be divided into three parts:
Part 1: Introduction
The introduction sets up your response by succinctly stating your understanding of the issues, what you think is the best way to analyse the situation – including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be. 
Part 2: Analysis
The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to
eak this section up into a number of sub-parts – one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications.
Part 3: Conclusion
In the conclusion you
iefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered.
 
Requirements
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Sources used in your answer should be fully referenced in APA 6th style.
Assignments must be submitted through Turnitin.
Answered Same Day Aug 04, 2021

Solution

Komalavalli answered on Aug 07 2021
156 Votes
8
Q1)
Introduction:
Australia plays a major role in supply of LNG gas at the global level; Qatar and U.S.A are next lead exporters of LNG .Australian gas market follows Oligopolistic Competition in the market. Oligopolistic market is a condition where there are few sellers in the market produces homogenous or differentiated product.. Price and supply of Output decision was made by Cartel. Oligopolistic firm combined together and make decision on what amount of output should they sell at what price. Usually prices were high and supplies were less in this market compared to perfect competition market. Oil producing market is the best example for oligopolistic competition. We wil now discuss about how Australian gas market were functioning for last ten years, what are the determinants of supply and demand of gas in that market and the price of gas in Australia for past ten years.
Analysis of Australia Gas market:
Oligopolistic Price determination was shown in the below diagram
Here the equili
ium point of demand and supply is at point c. price was fixed at P with Q amount of supply. Area abcd was the profit for oligopolistic firm.
Gas supply regions of Australia:
    
Three major regions in Australia involved in the supply of natural gas. They are East coast region of Australia includes Queensland, NSW, the ACT, Victoria, Tasmania and South Australia. Western Region includes Western Australia and the Northern Region includes Northern Te
itory. Producers from these areas supply natural gas both at local and global level markets. These regions were facilitated with interconnected pipelines in order to supply gases.
Natural Gas Production:
Natural gas production consists of producing methane, ethane, coal seam gas and Uranium. From below graph we can see that total natural gas production was increasing from 2008-2018. Combination of Methane, ethane and coal seam gas production was high and increasing trend compared to uranium gas. From 2014-2018 there is a slight increase in coal seam gas production.
Production of natural gas slightly increased for the period of 2008-09 to 2014-2015. After 2014-2015 there is a sudden increase in production of natural gas due to rise in demand for Australia natural gas at global level.
Amount of Natural exported out of total amount of production in Australia:
Source: AER; AEMO.
Above graph shows that uranium gas was contributed high export volume compared to other two natural gases LPG and Logout of three natural gas export LNG contributed low amount in total export volume. Total natural gas export was declined for the period of 2008-09 to 2010-11, increased in 2010-2011 to 2011-2012, decrease in 2011-12 to 2013-14, increased in 2014-15 to 2017-18.
Daily demand of natural gas for 2008-09 to 2018-19:
Source: AER; AEMO.
The above graph shows average daily demand of gas by Australian Consumers for last ten years. Initially demand for gas was around 1650 tera joules in 2008-09, gradually increases till 2010-11 reaches peak between 1700 and 1750 tera joules. It started to fall to around 1670 tera joules in 2010-2011. From 2012-13 to 2014-15 average daily demand for natural gas started to fall and it became around 1550 tera joules. After 2014-15 average daily demand for gas started to rise and it reached around 1600 tera joules in 2017-18. In 2018-19 there is a sudden fall in the demand amounts to 1500 tera joules.
Household Energy price index for 2003-2018:
Above graph shows the price of energy, it consist of natural gas, electricity, automotive fuels, cpi for the period 2003-2018. By comparing above energy, electricity price was high. Until 2009 electricity price was rising. In 2009 there occurs a reform in energy sector, renewable energies were used in order to reduce ca
on footprint. Due to this gas price was bit higher than electricity cost in the domestic market. Rise in export of natural gas led to increase in price of natural gas, which lead to the rise in price of the electricity in domestic market. Electricity cost and natural gas cost are interconnected. Because electricity productions involves natural gas as a major input after 2009.
Cu
ent Scenario of Australia Gas Price:
People living in high level of gas exporting countries usually get gas at cheapest price. Gas price on the eastern coast of Australia (including the states of Victoria, Queensland, New South Wales, Tasmania as well as Australian Capital Te
itory and Jervis Bay Te
itory) are paying higher than global equivalence price at a $8-12 per gigajoule, East coast is twice the cost of gas that west Australian consumer give. East coast of Australia is producing 3 times more than it consumes, but most of this production was exported for seeking high profit among firms in this region. It causes a shortage in domestic market and forcing to depend on import gas. There are no import terminals for gas in Australia. Due to shortage in supplies 5 proposals were made to setup gas terminals by ExxonMobil for...
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