Assessment Information Subject Code EEDSDU ECOSUU Economics for Managers Assessment Number and Title Assessment 2- Analysing the economic context in which the business operates Assessment Type To be completed individually. A written research-based report using analysis of cases involving diagrams and data to substantiate your responses. length ,l Duration Completion ofsettasks using diagrams and written report {2000 words) Weighting 96 30% Total Marks 100 Online submission for the written report Due Date Sunday of Week 8, 11:59 pm Online submission Format Completion ofset tasks using Visio or other graphic software plus written report lword.doc} Description: The Reserve Bank ofAustralia (RBA) is committed to doing what it can to support jobs, incomes, and businesses in Australia The Reserve Bank of Australia reduced the official cash rate a couple of times during the pandemic in 2020-21 to boost the economy. These RBA decisions to reduce interest rates have impacted many sectors including the housing sector in Australia. Required: Question:1 Suppose the housing sector in Australia is a perfectly competitive market. a. Draw a diagram of a perfectly competitive firm making short-run economic losses during covid 19 pandemic situation. Explain youranswer. (4 marks} b. Explain the impact of interest rate reduction in the housing sector. Draw diagrams to show the transition from a short run to a long run in a perfectly competitive market. (7 marks) Question 2: Now let's assume XYZ Company is one of the monopolistic competitive firms in Sydney, that specializes in housing construction. a. Draw a diagram to illustrate XYZ making economic losses in the short run during the pandemic. {4 marks) b. Assume there is no change in the costs of building materials. Show the impact of interest rate reduction on builder X'r'Z's demand from C12 part la}. {6 marks)