Ms Ng
Arvin
Audrey
Azman
Benjamin
Capri
Carl
Caroline
ChongMei
Clement
Debbie
Debra
Edmund
Edouard
Gensen
Hanif
HuiXin
Javis
Jiaxin
JunQuan
Marcus
Marilene
QianYi
Ryan
Siyuan
ZhengYi
the Central problem of Economics is the problem of scarcity, which arises from the unlimited wants and limited resources, that is limited guys for Audrey to choose from. Thus a choice has to be made and the choice is Andre. This will then lead to an opportunity cost of Nathaniel, who is the next best alternative forgone...The downwards sloping nature of the Production Possibilities Curve (PPC) reflects increasing opportunity costs. Points on the PPC are allocative efficient and Andre and Nathaniel are points on the PPC. The points outside the PPC reflects unattainable points whereby there is limited resources, which is Gensen. The points inside the PPC reflects unemployment or underemployment of resources, which is Gong Hua.And according to the demand and supply laws, there is high demand for Audrey but supply for Audrey is low....Therefore Audrey is an inelastic good,that is to say fluctuation of the price will lead to a less than proportionate change in the quantity demanded.
On the other hand, Nathaniel is an elastic good which is to say fluctuation of the price will lead to a more than proportionate change in the quantity demanded. Thus he falls under a perfect competition market structure, whereby all goods are homogeneous and identical. =)))
