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Economics Tuition – Explain whether the demand for tour package is price-elastic or price-inelastic.

Economics Tuition Bishan – Demand & Supply/Elasticity of Demand and Supply – 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 determinants of PED
•Assess how it will affect the value of PED
•Discuss it in the context of tour packages
oDegree of necessity of dd
oAvailability of substitutes
oProportion of income spent on the good
oTime period for consideration of purchase

2) Analysis of the significance of determinants of PED
•Time period – search time is longer – PED-elastic
oTour agency organizes more tour exhibitions with fall in price to increase in Qtydd

Conclusion
The understanding of the determinants of PES will reveal the economic profile of the consumers which reflects the consumption behavior and purchasing power and thus will determine when the demand for tour packages is price-elastic or price-inelastic.


This article is contributed by Mr. Simon Ng, founder and principal JC Economics Tutor of Economicsfocus, who has 20 years of teaching experience. Currently, Mr. Simon Ng provides specialized Economics Tuition and GP Tuition. To read more articles on Economics issues and skills development, please refer to the JC Economics Essays blog.

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.

Economics Tuition Bishan – Demand & Supply/Elasticity of Demand and Supply – 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 total supply of new private residential properties nearing completion was at a record high.
Source: http://www.ura.gov.sg/pr/text/2011/pr11-135.html, accessed 28 October 2011

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. (A Level 2013 H2 Q2) [25]

Introduction
• State that the reported changes in the price of private residential properties can be examined from the demand and supply analysis
• It can also be observed that there is an increase in price level
• State that certain dd/ss factors are significant in influencing this change in price

Main Body
1. Explain why price of private residential properties rises, given the above situation
(increase in DD> increaseSS)
– Develop causation/draw diagram/description of diagram

2. Identify and explain the demand factors that will influence the change in price
–Evaluate the significance

3. Identify and explain the supply factors that will influence the change in price
– Evaluate the significance

4. Evaluate whether the dd/ss factors are more significant in influencing the change in price

Conclusion
In sum, the understanding on how the market price and output for goods like private residential properties can be understood with the knowledge on demand and supply factors that influence the market. It is also imperative to understand the significance of demand and supply factors to measure the extent of impact on the price trend.


This article is contributed by Mr. Simon Ng, founder and principal JC Economics Tutor of Economicsfocus, who has 20 years of teaching experience. Currently, Mr. Simon Ng provides specialized Economics Tuition and GP Tuition. To read more articles on Economics issues and skills development, please refer to the JC Economics Essays blog.

Economics Tuition – Explain the impact of recession and the rise in price of oil on the aviation industry and its related market.

Economics Tuition Bishan – Demand & Supply/Elasticity of Demand and Supply – Explain the impact of recession and the rise in price of oil on the aviation industry and its related market.

Structure
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 aviation industry – contributing to a change in the price and output

2. Explain how the above effects affect the related market
a. Complementary product – hotel accommodation

  • Economic Causation
  • Diagram
  • Description of Diagram

b. Substitutes – train and other modes of transport

  • Economic Causation
  • Diagram
  • Description of Diagram

c. Derived demand – plane manufacturers

  • Economic Causation
  • Diagram
  • Description of Diagram

Conclusion
In sum, the above impact will affect various markets as seen from how they affect the market equilibrium of the respective markets. It is critical to understand the changes in the demand and supply factors and the types of demand and supply so as to derive the interrelationship of the different markets which will affect the market equilibrium.


This article is contributed by Mr. Simon Ng, founder and principal JC Economics Tutor of Economicsfocus, who has 20 years of teaching experience. Currently, Mr. Simon Ng provides specialized Economics Tuition and GP Tuition. To read more articles on Economics issues and skills development, please refer to the JC Economics Essays blog.

Economics Tuition – Demand & Supply/Elasticity of Demand and Supply – Discuss how Price Elasticity of Demand (PED) and Price Elasticity of Supply (PES) can be used by the Sakae Sushi manager to maximise profit.

Economics Tuition Bishan – Demand & Supply/Elasticity of Demand and Supply – 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 concept of PED determines the value of PED for Sakae Sushi.

2. Explain how the concept of PES determines the value of PES for Sakae Sushi.

3. Explain how the PED is used to increase revenue by decreasing the price level during weekdays and maintain high price in weekend to raise total revenue as the demand is price-inelastic

4. Explain how the producer will conduct their stock management or food production – given that Sakae Sushi has price-inelastic supply – as product is perishable and cannot be stocked and the cost of resource is high

5. Discuss the limitations of the concepts (refer to other essays – 3 points)

Conclusion

In sum, the concepts of PES and PED are useful to help producers understand how to increase revenue and lower cost of production to maximize total revenue. However, these concepts must be applied with the understanding of the nature of the good and the limitations of the elasticity of demand and supply concepts.


This article is contributed by Mr. Simon Ng, founder and principal JC Economics Tutor of Economicsfocus, who has 20 years of teaching experience. Currently, Mr. Simon Ng provides specialized Economics Tuition and GP Tuition. To read more articles on Economics issues and skills development, please refer to the JC Economics Essays blog.