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Graincorp Government Intervention

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(1) Company
GrainCorp is a large integrated company, it focuses on the business grains, malt, oils mainly, and it celebrated one hundred years of development in 2016.
(2) Characteristics of the company and market structure
According to the information of the company, it is clear that their products are not special in this market, but they are necessary in people’s daily life. This means these products have a considerable number of sellers and buyers. In addition, this kind of business is completely free and without any difficulty to any company or producer, this means to enter or exit the market is decided by themselves entirely, without any social laws and others. At last, every buyer and seller have all the information about this business, …show more content…

(3) Government interventions
The Government intervention also known as Macro-control, it means the government’s overall management of the national economy. It is the economic operation of this country, in order to promote the development of market, standardize the operation of market, the overall regulation and control of the social economy (Timmer, 1989).
In order to overcome the market failure, to make up for the shortcomings of market or inadequate, it is the function of the government intervention and regulation of market. Mainly in the following areas: The government limits the monopoly and against unfair competition through legislative method. Establish and improve the market economy system. Correct the veracity of the market information. Adjust the distribution of income, keep balance of the social equity and so on.
There are many forms of government interventions in the operation of the market. For instance, price control, taxation, subsidies, direct supply, management of the corporate behavior and so on.
(4a) Example of government …show more content…

The purpose of all changes of policies are overcoming the agriculture market failure, to make up for the shortcomings of market or inadequate. They are both benefit to the Australia agriculture business, and Australia government want to achieve the goal that let agriculture become the economy pillar. In addition, the economy of agriculture becomes better which means the income of the government becomes better, which means it can promote the whole of Australia's economic development.
(4b) How do the price elasticity of demand and the price elasticity of supply affect the magnitude of the impact from this market intervention?
The price is the most important component of the market. It is usually an important factor affecting the success of the transaction, but also the most difficult to determine the market of factor.
From these government interventions, the price elasticity of demand is affected by the following factors:
The cost

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