ECS3704 Assignment
1 (COMPLETE
ANSWERS) Semester 2
2024 - DUE August
2024 ; 100% TRUSTED
Complete, trusted
solutions and
explanations.
ADMIN
[COMPANY NAME]
, ECS3704 Assignment 1 (COMPLETE ANSWERS) Semester 2
2024 - DUE August 2024 ; 100% TRUSTED Complete, trusted
solutions and explanations.
Analyse with the aid of a diagram, why it may be necessary for
government to intervene in the case of pollution created by steel
production. Using the same diagram, explain the policy options
at the disposal of government to address this issue.
To analyze why government intervention is necessary in the
case of pollution created by steel production and to explain the
policy options available, let's break it down step-by-step using a
diagrammatic approach.
Analysis with Diagram
1. Diagram: The Market for Steel Production
Consider a standard supply and demand diagram for steel
production. Here’s how you can set it up:
1. Axes:
o Horizontal Axis: Quantity of Steel Produced (Q)
o Vertical Axis: Price of Steel (P)
2. Curves:
o Demand Curve (D): Downward sloping, showing
that as the price decreases, the quantity demanded
increases.
o Supply Curve (S): Upward sloping, showing that as
the price increases, the quantity supplied increases.