Demand for Bun (Jocelyn) vs Demand for Youtiao (Waifoon)
When White meets Black… then White meets White again
When the price of Waifoon increases, the demand for Jocelyn increases. This is because buns and youtiaos are substitutes and thus consumers like Huiqi will switch their preferences to cheaper alternatives for breakfast when price of one Dim Sum increases to satisfy similar consumer needs (YUM:D)
On the other hand, when the demand for Jocelyn increases, the demand for Ashleen (Soya bean milk) increases as well. This is because buns and soya bean milk are complements. People like to eat them together >)
Thus, using the theory of market equilibrium, overall demand for Jocelyn will increase but the overall price is still undetermined as this is dependent on the magnitude of change in the demand curve.
Moral of the story: Do you prefer buns or youtiaos?
Done by: Huiqi and Jocelyn
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment