Transcript Presentation

Economics project
Done by:
Jasmine Quek
Serene Quek
Vanessa Lim
Rachel Lee
Wee Hong Yi
Project A
Take a look at our video that we had made
to understand how the price of ipad is
determined.
http://www.mediafire.com/file/k35674a7t1i04
d9/project%20A.wmv
Project B
Japan
Economy
Deficit
iPad 2
Japan Economy Deficit
DUE TO
RESULTS IN
(PRODUCERS)
quantity and quality
of resources
Negative growth,
lower output
reduction in supply
RESULTS IN
Unemployment,
decrease in income,
loss of homes
(CONSUMERS)
Purchasing power
Fall in demand
More consumers
rationed out of market
(rationing function)
More consumers
unwilling and
unable to
purchase iPad
Effects on Marketing & Pricing
Decisions
fall in quantity supplied > fall in quantity demanded**
**Although the Japanese may not be as
willing to buy iPad due to their situation
, people from all over the world would
still want to buy the iPad , the demand
for iPad would therefore not be greatly
affected as compared to the quantity
supplied.
Equilibrium point at which the demand
and supply curve meets will shift
leftwards, allowing us to conclude that
the price will increases.
Introduction of iPad 2
(CONSUMERS)
Assumption:
Consumers prefer
substitution goods
such as the iPad 2
since it is newer and
better than the ipad
Demand for iPad would
decrease
Introduction of iPad 2
(PRODUCERS)
Due to fall in demand
for iPad, producers
channel resources to
the production of the
iPad 2 instead of
iPad
Decrease in quantity
supplied of iPads
Effects on Marketing & Pricing
Decisions
Fall in Demand > Fall in Supply**
**According to the Marginalist Principle, it would be rational for
consumers to purchase substitution goods (iPad 2) than the iPad.
This is due to the fact that the satisfaction gained from consuming
an additional iPad < cost paid for that additional iPad. Thus, fall in
demand would be greater than fall in supply
According to the curve, the
equilibrium point will move
leftwards , allowing us to
conclude that the equilibrium price
decreases.
Credits
www.businessinsider.com/japan-supply-chain-20111-3