Microeconomics

  Requirement: 

You have to write a short paper that uses microeconomics to analyze some surrent news or policy debate. The purpose of this assignment is to provide you with an opportunity to use economic concepts and principles that you will learn in this course to underdtand real world events. In the process, you will see for yourself the usefulness of economic theories and connection of real life and abstract economic theories.

Specific requirements:

Five pages（double space）

The analysis article:

http://www.nytimes.com/2014/04/01/business/international/japanese-rush-to-buy-before-rise-in-sales-tax.html?_r=0

Organization:

First, analyze and conclude the article

Then, using below figures to analyze(how does the rising tax influence the consumer, producer and government and the market through long run and short run). The analysis wil mainly focus on these figures.

And, using microeconomics knowledge to analyze Japanese economic market.

Finally, conclude the article.

Note: using microeconomics knowledge and relate to the article.

the influence of tax for the market

Incidence of tax(consumer surplus producer surplus and government loss)

The influence of the tax for consumer’s choice (indifference curve)