Set up a yoghurt ice cream store after 'A' Levels Exam – PDG 2212 Group 5
Quantity Demanded
At a higher price of yoghurt ice-cream, a lower quantity will be demanded, ceteris paribus.
Demand
Prices of Related Goods
Alternatives (Substitute Goods)
Price of yoghurt ice-cream increases
Demand for substitutes increase
Price of normal ice-Cream decrease e.g. MacDonald's
Consumers switch from yoghurt ice-cream to ordinary ice-cream
Demand for yoghurt ice-cream decreases
Tastes and preferences
Yoghurt Ice Cream is something new compared to three other ice cream stall in AMK Hub
Consumers would want to try something different
Consumers becoming more health conscious
Consume yoghurt instead of normal ice-cream since it is beneficial to one's health
Demand will increase
Population
Demand for yoghurt ice-cream will increase
Young people like to eat ice cream and yoghurt
Large population of teenagers (school area)
Income
Higher demand for yoghurt ice-cream
Able to afford higher quality foods i.e. yoghurt ice-cream
Lead to higher purchasing power
Consumers have higher income
Singaporeans getting wealthier
Quantity supplied
At a higher price, a higher quantity will be supplied, ceteris paribus.
Supply
Government Policies
Subsidies provided to manufacturing of ice-cream
Higher supply of yoghurt ice-cream
Higher profit level
Lower cost of production
Natural Factors
Mad Cow Disease
People will refrain from buying products made of milk
Consumers look for substitutes
Decrease in demand
Cows die
Decrease in supply of milk
Higher price of milk
Increase in cost of Production
Size of the industry
More producers
Decrease in Equilibrium Price and Increase in Equilibrium Quantity
Increase in Supply
No. of producers
My Dessert House
McDonalds Ice Cream
Andersen Ice Cream
Prices of Related Products
Quantity demanded will decrease
Goods in Competitive Supply may be cheaper than Yoghurt ice-cream
Cost of Production
Supply of yoghurt ice-cream will fall
Producers cut back on production and switch to alternative products
Lower level of profit
Higher production cost
Higher cost of raw material (cost of milk increase due to high demand)
