CONCLUSION: Due to market equilibrium, the increase in supply and demand will lead to an increase in quantity.
Increase in supply
Increase in demand
However, since demand will increase to a greater extent compared to supply, there will be an increase in price as well
Set up a yoghurt ice cream store after 'A' Levels Exam – PDG 1112 Group 5
hi :)
Explain the concept of scarcity, choice and opportunity cost when you are deciding whether to set up the Yoghurt ice cream stall.
Opportunity Cost
Opportunity cost is the cost of any action or decision, measured in terms of the highest valued alternative forgone.
Education and future career prospects which
the student would be able to garner from entering
a top university.
Choice
Choice is to allocate scarce resources so as to maximise the satisfaction of the most wants.
For whom to produce?
The general public
How to carry out the venture
Through the setting up of the yoghurt ice cream stall
What to use the time on
Yoghurt ice cream stall
Scarcity
The situation that exists when there is excess of human wants over what can actually be produced to fufill these wants.
Time is limited
Wants
Set up a Yoghurt ice cream store
Go to university
Using the extract above (you may include other relevant economic concepts), describe the demand and supply factors that you will consider when you set up a Yoghurt Ice cream stall at AMK.
SUPPLY
3 different competitors (size of industry)
Increase supply by setting up another stall
Price will decrease due to the increase in supply
Leading to the increase in price of milk
Increase in cost of production
Lower the profit level of producer
Decreased supply
DEMAND
Singaporeans have been earning higher income
More people willing to pay for normal good
Therefore there are little substitutes
Demand is not likely affected by change in price of goods in competitive demand
Taste and preferences
Only stall selling yoghurt ice cream in AMK Hub
People may find that the yoghurt icecream is something different so rather than the usual icecream, they go for yoghurt icecream.
People that are more health conscious as it is a yoghurt icecream, where yoghurt is beneficial to health.
Increased demand
