Demand and supply are one of the most essential concepts of A-level Economics. So, having good ideas for this chapter is significant. Often, students hesitate to attempt the demand and supple questions as they feel it’s complicated. However, the truth is that with proper conceptual understanding and support of the mentors, anyone can ace this chapter of economics.
In this article, we will have a brief understanding of demand and supply. Moreover, we will discuss the problems students face. And what are the critical key points that are a must for this chapter’s preparation?
The Concept of Demand & Supply
Demand and supply are the two key concepts of economics A-levels. These concepts’ primary purpose is to determine the goods’ value or price through their interaction graph. Moreover, the change in the price and quantity of interest is determined by the supply and demand curves, respectively.
There are two factors that you need to study for your economics exam. Let us look at the brief description of both terms:
Demand and Price Elasticity of Supply
You must have learned in your college that price and quantity demand have an inverse relationship. We all witness this relationship in real life that when a product price increases, its quantity demanded decreases. For instance, if they increase the price of eggs, people will buy lesser eggs than usual. However, they won’t avoid buying it altogether. The same is the case with warm clothes, milk, transport, and other necessities that we cannot live without.
Other than that. Let us look at one real-life example. In 2020, as the Covid-19 was on the spread and everyone expected a lockdown. As a result, everyone started buying eggs more and more. The demand increases, but the production was the same, so everyone witnessed an unexpected shortage. As a result, the price went up.
The supply of eggs is likely to be price elastic as eggs’ production time is expected to be short because eggs are mass-produced on an automated production line. Therefore, the change in demand for eggs is likely to cause the price to rise by a small extent and quantity to increase vastly. Such a complicated concept is only understandable when an experienced economics tutor teaches it.
Supply And Price Elasticity of Demand
There are a lot of examples of the direct relationship between price and quantity supplied as well. When the price of eggs rises, the production will increase automatically. Therefore, firms will produce eggs more. Due to Covid-19, there was a rise in production cost, so there was a lesser supply. You can learn more information about quantity supply and price from the best economics tutor in Singapore.
Checklist of concepts
There are a few concepts and key points mandatory for all the candidates when it comes to the JC economics examination. Here are some of the important ones:
- Explaining how the Singapore government can use the concepts of elasticity for their use economy
- Explain the Price elasticity of demand and income elasticity of demand. And why are there different elasticities
- Differentiate between price, cross, and income elasticities of demand
Reason for importance of Demand and Supply
Some students avoid attempting the demand and supply questions as they fear doing the wrong analysis. Therefore, students should not avoid this topic at all. Here are a few reasons explaining the importance of this topic.
- The case study section will most certainly have a question of demand and supply. Mostly the examiner will ask you to analyze the situation. Questions on this topic are on the trend list. Moreover, one question will carry four marks.
- The essay part can hold a demand and supply question. If you expertise on this topic, you can easily attempt the micro-essays as well. Other than that, we are never too sure how difficult the market structure and market failure questions turn out to be.
Anthony Fok at JCEconomics knows how to teach this topic. No matter how hard the question appears, it only tests the concepts of students. Therefore, Mr.Fok tutors his students to breakdown the problem and complete the confidence to solve the questions. As a result, they gain more masks than their peers. Moreover, he explains all the concepts himself through real-life examples. The proof of his excellent tutoring is evident through his past results under his supervision. The students ace the A-level economic examination. Find more about this economics guru and his tuition center through the website. BESTECONSTUITION.COM