Set up a yoghurt ice cream store after 'A' Levels Exam – PDG 2612 Group 1 Qn 2

Price of related goods

Price of milk increased

Supply decreases

Leftward shift of supply curve

Cost of production

Factor prices

Cost of labour

Higher cost of labour

Decrease in number of workers

Lower productivity

Decrease in supply

Lower cost of labour

Increase in number of workers

Higher productivity

Increase in supply

Cost of capital

Higher amount of capital

Able to produce more Ice Cream

Supply Increases

Lower amount of capital

Able to produce less Ice Cream

Supply Decreases

Cost of raw materials

Higher cost of raw materials

Produce less Ice Cream

Supply decreases

Lower cost of raw materials

Produce more Ice Cream

Supply increases

State of technology

Packaging

Labour

Cost of labour in Singapore is high

Needs More labour BUT less output

Supply decrease

Machines

Increase productivity of yoghurt ice cream

Supply increase

Leftward shift of supply curve

Goods in competitive supply

Ice cream VS yoghurt ice cream

Increase in production of ice cream

Less milk to produce yoghurt ice cream

Supply of yoghurt ice cream decrease

Rightward shift of supply curve

Size of industry

More producers selling yoghurt ice cream

Supply increase

More choices for consumers

Natural factors

Cows

Mad cow disease

Decrease in supply of milk

Decrease in the quantity of Ice Cream produced

Increase population of cows

Increase in supply of milk

Increase in the quantity of Ice Cream produced

Fruit for toppings

Natural disasters eg drought

Decrease in supply of fruits

Good weather conditions

Increase in supply of fruits

Producers' expectations of Prices

Price is expected to increase when the store is more popular

Near future: reduce the supply to build up stocks

Long term: increase the supply for higher income

Government policies

Tax on milk

Decrease in supply of goods

Profit decrease

Taste and preference

Yogurt: healthier alternative

Yoghurt can reduce possibility of getting high blood pressure

Demand increases

New type of Ice Cream

Yoghurt Ice Cream is unique

People wanting to try out new taste

Demand increases

Income

Consumers income increase

More willing to spend on Ice Cream

Demand increase

Consumers income decrease

Less willing to spend on ice cream

Demand decrease

Population

Teenagers

Near schools

Number of students increases

Demand increases

Adults

Near HDB

Easier accessibility

Demand increases

Substitutes

Yoghurt ice cream/ ice cream

Rise in price of normal ice cream

Decrease in demand of normal ice cream

Increase in demand for yoghurt ice cream

Government Policies

Government encourages Singaporeans to consume healthy food

More people choose to eat yoghurt ice cream

Demand increases