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Chapter 5 Application of Demand, Supply & Elasticity - Coggle Diagram
Chapter 5 Application of Demand, Supply & Elasticity
In the goods market
Market
change in demand
PES
XED
YED
change in supply
PED
Impact on market variables
Government
government intervention
Discourage production/consumption of a good
Indirect taxes
Specific tax
Ad Valorem tax
Quantity controls/Quotas
Moral suasion
Other legislation/regulation
Encourage production/consumption of a good
Subdsidies
Supply-side
Demand-side
Moral suasion
Other legislation/regulation
Raise revenue
Increase affordability of certain goods
Subsidies
Price ceiling
Price floor
Safeguard producers' interests
Price floor
Firms
Usefulness of PED
Usefulness of XED/YED
Market
PES
XED/YED
PED
In the labour market
Price floor aka minimum wage
Implication of WED & WES
Impact on market variables
Labour demand
Quantity demanded for labour vs Demand for labour
factors affecting
Changes in the production of goods & services
Demand for product
Supply for product
Productivity of labour
Technology
Substitute vs complement
Changes in price of other factor inputs
Substitutable factor vs complementary factor
Government policies
Subsidies
Consumption
Production
Wages
Foreign Worker Levy (SG)
Labour supply
Quantity supplied of labour vs Quantity of labour
factors affecting
Changes in labour force
Immigration
Population growth
Ageing population
Inclusion of women
Changes in size & composition of qualified workers
Government policies
Changing qualification of certain jobs
Provision of subsidies for education & training
Changing the incentive to work
Adjusting retirement age