| Best Economics Tuition by TET | |
| In the session, Mr Koh discussed various topics related to Topic 1 in J1 H2 Econs, including the central problem of economics, the impact of event on the Production Possibilities Curve (Ptc), and the concept of rational behavior. The discussion also covered the topics of demand and supply, market structure, and market failure, with a focus on the factors affecting demand and supply. The lessonended with a review of substitutes in consumption and an assignment of two thinking questions for the next session, which will cover the price adjustment process. | |
| Next steps | |
| • H2 Econs tuition students to attempt the two thinking questions about the market for beef and the market for cobalt, and submit answers to Mr. Koh over the next few days. | |
| • Mr. Koh to discuss the price adjustment process (PAP) in next week’s lesson. | |
| • Students to review the demand and supply factors discussed in class to prepare for next week’s lesson. | |
| • Mr. Koh to cover more details on surplus and shortage in future lessons. | |
| Economics Course Chapter One Review | |
| Mr. Koh guided the class through a review of chapter one of their economics course. They discussed the central problem of economics, focusing on two main question types: the impact of an event on the PPC and the illustration of opportunity cost using a PPC. They also explored the concept of rational behavior, using a diagram to illustrate the relationship between marginal benefits and costs. Mr. Koh emphasized the importance of understanding shifts and movements in the context of economic decisions. They also touched on the impact of government spending on the PPC. The class was advised to clarify doubts and move forward with clarity in future lessons. | |
| Understanding Demand and Market Dynamics | |
| Mr. Koh discussed the topics of demand and supply, market structure, and market failure. He explained the demand function, which represents the quantity consumers are willing and able to buy at different prices. Mr. Koh clarified that a change in demand is a shift of the entire demand curve, while a change in quantity demanded is a movement along the demand curve. He stressed the importance of understanding the effect of a price drop on quantity demanded, using the example of a 20% off sale on jeans. Mr. Koh also touched on the significance of considering events before and after a sale, using historical events like Black Monday to illustrate his point. | |
| Factors Causing Queue at BYD Outlet | |
| Mr. Koh discussed the factors that could cause a queue outside a BYD factory outlet. He suggested that the queue could be due to the car being very cheap aka a discount, or a new car model. He also mentioned that the expectations of consumers could play a role, such as anticipating a price increase or a new model release. Mr. Koh further explained that these factors could lead to a rise in consumption, even if the price remains the same. He also touched on the topic of increased exhibitions and travel fairs in December, and the reason behind online shopping platforms offering deals during this time. | |
| Rising Incomes and Consumer Spending | |
| Mr. Koh discussed the effect of rising incomes on spending behavior. He emphasized that people tend to view bonuses as less valuable money compared to salary. By using mental accounting, individuals may allocate bonus funds separately from their regular income. Mr. Koh then introduced the concept of normal goods and inferior goods, noting that as income increases, people may buy more of normal goods, and less of inferior goods. He also touched on the role of government policies in influencing demand, providing an example of how a government report could affect people’s consumption of alcohol. | |
| Other Factors Affecting Demand in Economics | |
| Mr. Koh discussed the factors affecting demand, including the price of related goods – substitutes, and complements. He explained that a change in demand could be due to non-price determinants such as income, expectations, government policies, and taste preferences. Mr. Koh reiterated the difference between a change in demand and a change in quantity demanded, emphasizing the importance of precise wording. He used examples like the price of Tesla and BYD, and the loyalty card system at bubble tea stores to illustrate these concepts. Mr. Koh also conducted a quick poll to gauge the attendees’ understanding of the topics discussed. | |
| Supply, Demand & Supply Curve Basics | |
| Mr. Koh ended the first half of the class at the 1-hour mark and encouraged participants to ask any remaining questions. He explained the concept of supply factors and their relationship to cost of production and profit-driven producers. He also discussed the factors that change on demand versus the factors that change quantity demanded. Mr. Koh then turned his attention to the topic of supply and explained the difference between a movement along the supply curve and a shift in the supply curve. He highlighted the non-price determinants that can cause a shift in supply, including a change in technology and abnormal events. | |
| Exploring Economics and Supply Dynamics | |
| In the session, Mr. Koh discussed several key topics related to economics and supply. He explained the concept of joint supply, where an increase in the price of one good leads to an increase in the supply of another, such as beef and leather. He also discussed competitive supply, where an increase in the price of one good leads to a decrease in the supply of another, such as wheat and corn. Mr. Koh further explored the impact of expectations on supply, noting that if producers expect a price increase in the future, they may hold back on current supply. He also touched on the concept of derived demand, where an increase in the output of one good leads to an increase in the demand for a related factor, such as fertilizers. Finally, Mr. Koh introduced the idea of ceteris paribus, or all else remaining constant, to isolate the effect of a single variable on supply. | |
| Analyzing Corn and Wheat Price Dynamics | |
| Mr. Koh led a discussion on the relationship between the price of corn and wheat, assuming all else remains constant. He asked the participants to analyze the situation using the proper terminology, such as changes in demand, quantity demanded, supply, and quantity supplied. He also provided a clue that the event primarily affects corn, and the students were to find the correct factor. Mr. Koh then explained the price adjustment process and how a surplus or shortage occurs. He emphasized the importance of identifying these concepts with the proper terminology. He also mentioned that he would provide more details on the topic next week. | |
| Corn and Wheat Substitutes in Consumption | |
| Mr. Koh discussed substitutes in consumption with the J1 Economics tuition class, focusing on the relationship between corn and wheat. He explains that when the price of corn rises, the demand for wheat may fall due to changing preferences, or rise as consumers seek cheaper alternatives. The class also reviews the difference between changes in quantity demanded and changes in demand. Mr. Koh assigned two H2 Economics questions for students to work on before the next session, which will cover the price adjustment process. It is inadvertent that students will have questions on their syllabus after reviewing their notes or attempting their tutorials. Feel free to register for a trial session to see how the best JC Economics Tuition by TET can help! |
