Please enable JavaScript.

Coggle requires JavaScript to display documents.

HOW RECENT EMPLOYMENT ISSUES AND INFLATION PROBLEMS AFFECTED THE…

- - - - Fall in income level as higher unemployment rate mean more people doesn't get paid
        
        Less consumer confidence in buying
        
        Reluctant to purchase secondary and tertiary goods as they want to cover or prioritise basic needs first
        
        Stocking up on medical items (Masks, Disinfectant, handsanitizers)
        
        Stocking up on food
        
        RISE IN PRICES FOR THESE HEAVILY DEMANDED GOODS
        
        :arrow_backward:
        
        Would buy alternative goods with cheaper price
    - - Elasticity of demand increases, business becomes competitive
      - Demand for goods in certain markets will fall drastically
        
        Lower prices to survive
        
        Sales and profit decrease
        
        Need to cut back on costs
        
        Cut demand for materials, equipments
        
        Less output produced
        
        Cut demand for workers or make existing workers redundant
- - - - Bali, a city that relies heavily on tourism as their source of demand is now facing a crisis because of there are little tourists visiting as people are scared to travel outside due to the high chances of catching the virus.
      - STARBUCKS has announced the permanent closure of many stores as many avoid public spaces
        
        It's also said that because of the pandemic, people prioritises on buying basic needs