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.
Economics Tuition: Discuss the different supply and demand factors and their likely importance in determining the reported changes in the prices of private residential properties in Singapore
The Urban Redevelopment Authority (URA) announced that prices of private residential properties in Singapore rose by 1.3% in the third quarter of 2011, but the rise in the prices has been slowing for eight consecutive quarters. At the same time, it reported that the...
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Economics Tuition: Explain the impact of recession and the rise in price of oil on the aviation industry and its related market
Introduction Impact on the aviation industry in terms of input on market equilibrium – how price and output will change – affected by changes in demand and supply due to the above events Main Body 1. Explain how the above events affect the demand and supply in the...
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Economics Tuition: Discuss how Price Elasticity of Demand (PED) and Price Elasticity of Supply (PES) can be used by the Sakae Sushi manager to maximise profit
Introduction Definition of PED and PED and state the market information of the PED and PES will help producers in deriving the effective price and production strategy to raise and minimise cost of production so as to raise the profit. Main Body 1. Explain how the...
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Economics Tuition: Is taxation a good measure to curb smoking in Singapore?
Smoking is considered a demerit good as it incurs negative externality which is the third party effect imposed on non-smokers or the society and this is seen in terms of the negative effects of passive smoking which will undermine the society from developing a healthy...
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