Set Up A Yoghurt Ice-cream Store After 'A' Levels Exam- PDG 3212 Group 2
HOW SUPPLY AFFECTS DECISION
An increase in supply of resources available will lead to an increase in the shop owner's ability to produce yoghurt ice-cream. A decrease in supply would give a reverse effect.
Milk is a main ingredient for the yoghurt ice-cream. However, the quantity of supply of milk remains unchanged even though the demand of milk increases, causing an increase in the price of milk, putting a strain on the yogurt ice-cream business as more money is needed to purchase milk.
The owner also has three competitors, namely ice-cream from Andersen's Ice-cream, My Dessert House and Mc Donald's. Since he has three competitors with each one supplying the market with ice-cream as well, the competition for his business increases.
However, his product is quite unique as it is a YOGHURT based ice-cream. This allows him to supply his product to consumers who prefer yoghurt more than cream, which is the base in most ice-creams.
Also, reports of yoghurt being beneficial to health also adds on to the popularity of yoghurt ice-cream as more health conscious consumers would prefer it, rather than normal ice-cream. This will increase the demand for yoghurt ice-cream.
Scarcity
Since milk is a main ingredient in making yoghurt ice-cream, the increase of demand in milk causes the price of mik to increase, adding on to the scarcity of resources.
Unlimited wants cannot be satisfied by limited resources.
Such a problem of an insufficient amount of resources to produce all the goods and services needed to satisfy all human wants is caused.
Since scarcity is present, a choice has to be made on what is the best product to produce, in this case, yogurt ice-cream is selected, leading to an opportunity cost of pursuing higher education in university.
Opportunity Cost
each question one mindmap?
Arises in a situation where there are limited resources available to meet unlimited wants such that not all wants can be satisfied
In choosing to set up a Yogurt Ice-cream store,
the opportunity cost is to pursue higher
education in University
Sacrifice of alternatives
Main topic
HOW DEMAND AFFECTS DECISION
Demand for a particular product especially that of a normal good,is affected mainly by the situation of the country's economy. With a good Economy,the people tend to be earning more income.
milk, which is one of the main raw materials in making yoghurt, has been in high demand recently.
Results in a rise in the price of milk
Tastes and Preferences
As people ge more health-conscious, they will demand more
healthy food, such as the yogurt Ice-cream, instead of normal Ice-cream
When people have a higher income,they are more willing to spend more money on normal goods and start spending lesser on inferior goods
This will drive the demand for goods like "Yoghurt Ice-cream" up
Positively Affecting Decision in Setting up of store.
Choices
Are affected by how an economy is doing and depending on its priorities
Henceforth, when there is an increase in income for Singaporeans, they are now more willing to pay for the "healthier" though more expensive products such as the "Youghurt Ice-Cream"
When two or more options cannot be attained at the same time due to lack of resources, a choice has to be made on only one of the option and forgoing the rest.
