A large construction firm has won a contract to build a luxury mixed used development including private and social housing units as well as commercial units. You are employed by the firm to evaluate the market b and to find the best price for marble that will be used throughout the project for flooring and other uses in the building. Your employer has asked you as their economics advisor, to explain how the price of marble can be justified. furthermore, your employer wishes to understand the logic of government intervention in construction projects as they are planning to be involved in public sector bidding.

1. Explanation of the principles of economics that affect decision making by the seller and the buyer such as rationality, perfect information, self-interest, and equilibrium.
2. Explanation of the market price determination, i.e., the laws of supply and demand.
3. Comparison of different types of goods and the elaboration of the concepts of elasticity
4. Critically evaluation of imperfect competition, marker failure and for government intervention. You must use economic theory to analyse the above scenario and your report must include the following sections.
5. Use appropriate drawings and diagrams in your explanation.