Professional Documents
Culture Documents
0802457B
Topic: Demand and Supply
Article: Makeshift mart sells cheaper good staples
Source/Date: The Straits Times, 16 June 2008
Analysis
The article reported that price of food staples in the makeshift marts
in Jurong West have dropped to allow residents to enjoy privileges
for their good support over the past 20 years.
The diagram above represents the demand and supply for food
staples. The decrease in the price is reflected by a movement to the
right along the demand curve from A to B. When the price decreases
from P1 to P2, the quantity increases from Q1 to Q2.
It seems that there will still be a frequent sales offer for food staples
if the residents’ response is positive. This helps in improving the
seller’s sales profit as they are able to sell much more at lower
prices. Thus at the end of the day, it will be beneficial to both the
customers and the sellers.
Yap Ying Jie
0802457B
Topic: Elasticity
Article: US consumer prices up 0.6% as petrol soars
Source/Date: The Straits Times, 14 June 2008
Analysis
The article reported that the soaring petrol prices had caused
consumer prices to increase by the fastest rate in 6months.
It seems like petrol prices will continue to increase with the price
hikes from the producers of petrol in certain countries. This will not
be beneficial to the world economy as it affects everyone directly or
Yap Ying Jie
0802457B
indirectly in terms of pricing issues. Therefore, I believe that
something needs to be done to stop the petrol prices from
increasing.