Yoghurt Ice Cream store after 'A' levels PDG 2712

resources (imputs) these are limited

Resources to set up yoghurt ice cream stall

Time,Energy,Labour,Capital(machines)

Resources to go university

Time,Energy,Labour

Human choice has to be made. This is to satisfy human wants. Given that everyone can maximise their own self-interest, which option would allow for a higher level of satisfaction? Going to university or setting up an ice-cream store?

When a choice is made,a sacrifice would also be made at the same time.This is also known as opportunity cost,which is the cost of any decision measured in terms of the next best alternative forgone.For example,should i decide to set up a ice cream stall,the opportunity cost would be the satisfaction derived from going university

should i decide to set up a yoghurt? how should i go about doing it?

For whom to produce?

For those that are willing and able to pay,generally the middle and higher income group

How to produce ?

using machines or manual labour?

What to produce?

Yoghurt ice cream

unlimited wants

go university

set up ice cream stall

Factors affecting demand of yoghurt

Price of the good itself

By the law of demand, the higher the price of the good, the lower the quantity demanded. Vice-versa.

Price of related goods

Since yoghurt ice cream is unique we would be the only store in the area selling it. There are no close competitors around since they satisfy different wants. Yoghurt ice cream is generally for the more health-conscious people, while the other ice creams are junk food. Hence, the prices of these other ice creams would not imflict a huge impact on the demand of yoghurt ice cream.

Changes in consumers' taste and preferences

People have become more and more health conscious. The yoghurt ice-cream has been reported to be benefical to one's health, this will appeal to the health conscious people. Thus they will choose the yoghurt ice-cream over other ice-cream. Leading to increase in demand.

Change in consumers' income

Due to economic growth, Singaporeans enjoy a higher level of income compared to the previous year. This means that Singaporeans have more disposable income to spend on products such as yoghurt ice cream, hence this will drive up the demand of yoghurt ice cream.

Factors affecting supply of yoghurt

Natural Factors

Since one of the raw materials come from goats and cow, hence the change in the environment of these animals can affect their survival rates etc. For example, is a plague occured, many of these animals would be killed, and thus less milk would be produced. As a result, the supply of yoghurt ice-cream would decrease.

Prices of related goods ( Goods in competitive supply)

Goods that are in competitive supply with Yoghurt Ice Cream would be Cheese, Ice cream , butter etc. This is because they require the same raw material, milk. Hence, iif the price of these related good changes, producers will divert more or less resources to the production of yoghurt ice-cream. This would affect the supply of the yoghurt ice-cream.

Cost of production

Due to the high demands of milk recently, the price of milk have increased. Since milk is a factor of production for yoghurt ice-cream, the cost of production of it has increased. Given that the amount of resoures i.e. Milk decreased, less amout of yoghurt ice-cream would be produced.