Demand & Supply Analysis

Headline:Jakarta: Poor food distribution, bad start turn out out worsen worth problem Source:The caput Times Date:Friday, 10 family 2010 Summary Newspapers reports and figures released by Indonesias Central Statistic Agency confirm that consumers rush been forking out more(prenominal) for staples and other food items. The some(prenominal) reasons that constitute to the emerging food harms nuclear number 18 seasonal fort in consumption, additional income, lack of decent infrastructure and weather. colligate Economic Concepts take aim of a product refers to quantity which tidy sum ar allow foring and able to buy at contrastive determines, in a specified time period, ceteris paribus. Change in pauperism (for a given supply swerve) If one of the non-price determinants of adopt changes, the indigence turn will shift. [pic] When the rent of food increases, the demand curve will shift to the right. Both the balance price and quan tity will increase. Economic Analysis As mentioned in the article, during the Aidilfitri courageous period, the demand of staples and other food items increases. Staples and other food items are considered as normal goods. The demand increases only when consumers income increases. This was evident in the article as civil servants got their bonuses which will lead to higher(prenominal) expenditure power. As a result, everyone ended spending more silver on staples and food items during the festive season and thus resulted in the rise in food prices. From the economic perspective, when the demand of a good increases due to a non-price determinant, the demand curve will shift to the right (D to D1) as shown in plot 1 below. The equilibrium quantity will increase from Q0 to Q1 and the equilibrium price will increase from P0 to P1. Diagram 1 [pic] Conclusion To cut the rising prices of staples and other food items, Indonesia government may bring on p rice control on certain products during the ! festive season. Controls dissolve undertake a price ceiling, or a...If you want to repel a full essay, order it on our website: OrderCustomPaper.com

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