Supply
Determinants
Non-price
Goverment subsidies
Goverment may subsidise production of healthy food as part of campaign to promote healthy living amongst the citizens>Lower cost of production of Yoghurt ice cream>increase in supply of the food
Technology!!!!
Technology Improvement >
> Cheaper, more efficient methods
of production >> Easier to produce
Ice Cream
Size of industry
-the only industry to make Yoghurt Ice Cream
>must make everything by himself
>>so supply lower
Natural factors
warm weather> increase supply of Yoghurt ice cream to prepare for a rise in number of consumers
Cost of production
Higher cost of production, lower profit. May switch to alternatve products to sell
State of technology
Quality of ice cream and milk
Organisation and management
Techniques of production
Improvements in ice cream machine and labour performance
Changes in factor(input) prices
Maintanence Costs
Cost of raw materials such as milk and ice cream
Cost of renting the stall and machinery(if not bought)
and maintenance of both.
Cost of hiring external labour to
man the ice cream stall
Price
Price of product
the higher the price, a higher quantity will be supplied, ceteris paribus
Demand
Population
-Size of population increases>demand for many products like yoghurt increases
Taste and Preference
- People nowadays have different food preference.
- More prefer healthier food.
- Hence demand for Yoghurt Ice Cream would increase since it is far healthier than other products.
Competitors in Ice cream
- Other brands of ice-cream might come along
- Hence, subsitutes (goods in competetive demand) exist.
- If the price of other brands are lower than that of Yoghurt Ice Cream, demand drops and vice versa.
Income Of People
- Income of the consumers increases
- An increase in their purchasing power
- Thus they would be more capable to afford yoghurt ice cream
- Higher demand resulted
Set up a yoghurt ice cream store
after "A" Levels Exam - PDG 0212
Group 5
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anyone here
evryopne here ?
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Choice
Go To University
May gain academic qualifications for future career
Set Up Yoghurt Ice Cream Stall
May earn high income if successful
Opportunity Cost
If choosing to set up shop
A Degree in University that you would want
(Qualifications) + First Class Honours
If choosing to go university
Experience in enterprise-related skills
(trading & marketering)
No profit (econiomical gains)
Scarcity
Unlimited wants for milk, limited supply of milk
Increased cost of production
High price of milk
