ECO 6201-Business Economics

This individual coursework contributes 40% of the total coursework marks. Based on the reading materials provided, relevant economics theories and other references which you obtained on your own, answer the following questions:

1.    Explain the determinants of the demand for and supply of cars. You are required to present THREE (3) determinants each.

2.    With reference to the concept of externalities, explain the market failure that might possibly exists within the car market. Do use diagrams to support your answer.

3.    The governments of various South East Asian countries have intervened to reduce road congestion within their own countries. Illustrate and compare the impact of any TWO (2) forms of these interventions on the car market.