Price Elasticity of Demand and Supply
Recognise the extent of change in price and output
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good in relation to a change in its price. In essence, elasticity can be described as elastic (very responsive) or inelastic (not very responsive). During examinations students will be required to understand the concepts behind elasticity of demand and supply and will be required to draw graphs relating to elasticity to substantiate their arguments.
Price Discrimination
In our economics tuition, this jc economics note provides a good understanding on the concept of price discrimination and the three degrees of price discrimination. What is price discrimination? Examine price setting behaviour of firms In technical terms, price...
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Economics Tuition Case Study Question: Durian frenzy spreads to China
In the recent months, the price of durian in Singapore has increased. Generally, the durians are imported from Malaysian farmers. However, there has been a growing trend of Malaysian suppliers exporting durians to China. Hail the king of all fruits Mao Shan Wang (also...
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Economics Tuition: Using the Production Possibility Curve, explain how an increase in government spending contributes to economic growth
Economic growth refers to the growth of production, seen in terms of actual and potential production capacity. Actual economic growth, also known as short term growth, is commonly measured in terms of a percentage change in the real Gross Domestic Product (GDP). The...
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Economics Tuition: Discuss the relative significance of input cost, consumer incomes and market concentration in influencing firms’ pricing decisions in your country
Discuss the relative significance of input cost, consumer incomes and market concentration in influencing firms’ pricing decisions in your country. [25] Introduction Firms in most industries in Singapore face an imperfect market condition and the pricing behaviours...
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Economics Tuition: Assess the view that the Singapore government should use taxes rather than any other economic policies when dealing with the market failure associated with negative externalities
Assess the view that the Singapore government should use taxes rather than any other economic policies when dealing with the market failure associated with negative externalities. [25] Introduction Negative externalities are adverse effects imposed on third parties...
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Economics Tuition: Using economic analysis, discuss the likely impact of the above events on the airline industry and its related markets
2010 marked a trying time for the airline business. The eruption of the Icelandic volcano caused cancellations of 95,000 flights over Europe. One week later, the BP oil well exploded in the Gulf of Mexico, resulting in the worst oil spill in US history. Using economic...
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Economics Tuition: Compare the features of monopoly and perfect competitive firms
Compare the features of monopoly and perfect competitive firms. Introduction State that the perfect competition differs from the monopoly as there are perfect market information and mobility of resource in the perfect market competition while there are...
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Economics Tuition: Using economic theory, explain how firms in imperfect markets determine price that would maximize profits
Using Economic theory, Explain how firms in imperfect markets determine price that would maximize profits. Introduction Imperfect market structures are market structures that have imperfect market information and immobility of factors of production. The firms under...
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Economics Tuition: Distinguish, with examples, between the fixed and variable cost involved in the supermarket industry
Fixed costs are costs incurred by the firm on fixed factors of production that do not vary with any change in the level of output such as the expenditures on the insurance premium, cost of equipment and renovation cost. As for variable costs, the firm incurred this...
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Economics Tuition: Explain whether the demand for tour package is price-elastic or price-inelastic
Introduction Definition of price-elasticity of demand Meaning of price-elastic or price-inelastic demand for tour packages Examine the determinants of PED to assess whether demand for tour packages are price-elastic or price-inelastic Main Body 1) Identify the...
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