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Anachi75

ECO IA

Like I told you before, just talk about supply and demand man. basically in ALL econ IA's you need to define some key terms, draw a graph (i recommend using google docs, its easy) and explain the graph. then you analyise what the heck's going on, so you can talk about stuff like why the supply or demand has fallen etc etc. use quotes. then have a short conclusion. in YOUR case, i would figure you can talk about XED (cross price elasticity of demand)?, but thats just my thinking.

try that out? 

Hope this helped

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Firstly dude, I suggest you choose a more complex topic. You are eco HL.. This is not even enough for SL. 

But just in case, you wanna stick with this, here is a plan I suggest: 

1) Explain price mechanism then draw a diagram showing a generic Supply-Demand Intersection. This shows that at Q1, Price was P1. 

2) Since 2005, the supply in the US market has been decreasing as domestic and imports have been decreasing. Diagram - Showing a leftward shift in Supply curve. New market price, P2 is higher and quanity Q2 is lower. 

3) Since the market for beef is declining, the market for a complementary good is likely to benefit. In this case, the market for chicken. Diagram - Chicken shifted from Q1 to higher Q2. 

4) This increase is due to 'high energy and feed' costs. but, beef is more unhealthy than chicken hence, it is better that people chose to shift to chicken meat. 

5) show that welfare loss for beef is higher than chicken since consumption of beef has negative externalities like obesity and anyway, in USA, obesity is a major problem. 

6) Evaluation - Govt. interference in the form of subsidy to chicken market could help lower the demand for beef even more. However, govt. involvment in this matter could lead to loss of support from beef lovers. 

7) Evaluation - Govt. could tax beef to increase the price even more and hence, make chicken the more popular choice. Once again, the political aspect comes in. On top of that, muslims and other religions for whom beef is a necessity, might revolt against this. 

 

That should be all lad! Enjoy ur IA writing experience. BTW, I am an SL student so I dont know about Theary of firms. Good luck man! 

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