Demand, Supply, Market Equilibrium From passage: Singapore's strong economic recovery last year also made local

shoppers more willing to spend, he added. A. Increase in Income of consumer. A positive economic growth will means an increase in income of consumer which leads to an increase in the demand. There will be a rightward shift in the demand curve. Demand curve D shifted rightward to form a new demand curve D With an increase in the demand of the goods, and same amount of supplies, the prices of goods will increase. If price increases, this lead to an increase in the quantity supplied of a good, ceteris paribus. There will be an upward movement along the supply curve. From the graph, when there is an increase income of consumer, we see that at the original equilibrium price (Pe), quantity demanded exceeds quantity supplied. Hence, there is a shortage. When there is a shortage, there will be an upward pressure on price as buyers bid up the price. To attain market equilibrium again, seller sells more (quantity supplied increase) and buyers buy lesser (quantity demanded decrease). With increase in demand and quantity supplied the market equilibrium point shift upward along the supply curve. (E to E) From the passage: Mr Yamaguchi said sales to Singapore residents grew at a tepid pace last year and he suggests this may be due to locals being drawn to the integrated resorts (IRs) including casinos.On the flipside, the IRs attracted more tourists to Singapore and this benefited the retailer, which saw strong growth in sales to tourists in 2010. B. Increase in number of buyers. (refer to explanation to increase in income of customers) With an increase of number of tourists, there are more shoppers. Hence, there is increase in number of buyers. Increase in number of buyers will leads to an increase in the demand. Since there is an increase in demand, there will be a rightward shift in the demand curve. From passage: Mr Yamaguchi attributes this to improvements to the store last year, the introduction of new concept boutiques and exclusive merchandise as well as aggressive store promotions to both local and tourist shoppers. C. Tastes and preference of consumer. (refer explanation to increase in income of customers)

The taste of consumer is influenced by the promotions and advertisements of the store. The demand of goods of the store will increase as people are attracted to visit the store and buy from the store. Since there is an increase in demand, there will be a rightward shift in the demand curve. From passage: Still we're concerned that the competition may get tougher and our business performance may be affected in the mid-term. We feel that the retail market is getting saturated with the introduction of more new malls and brands coming on-stream. D. Increase in number of seller. With introduction of more new malls and brands, there are a larger number of producers, supply of goods will increase. There will be a rightward shift of the supply curve of the goods. Supply curve S shifted rightward to form a new supply curve S With an increase in the supply of the goods, and same amount of demand, the prices of goods will decrease. If price decreases, this lead to an increase in the quantity demanded of a good, ceteris paribus. There will be adownward movement along the demand curve. From the graph, when there is increase in number of seller, we see that at the original equilibrium price (Pe), quantity suppliedexceeds quantity demanded. Hence, there is a surplus. When there is a surplus, there will be adownward pressure on price as sellers are forced to lower price To attain market equilibrium again, buyers buy more (quantity demanded increase) and sellers sell lesser (quantity supplied decrease). With increase in supply and decrease in quantity demanded the market equilibrium point shift downward along the demand curve. (E to E) Scarcity: Resources Land resources: Limited space, a 40,000 sqmetre, eight-level store is scheduled to open around September next year at leased premises in Shanghai's Gubei area. Labour resources: Since more malls are set up, more staff will be needed to manage the business. Capital: Human capital is highly crucial, as they will need a management with specialized skills and knowledge to manage the daily operations and in terms of long term.

Physical capital such as the store buildings, the machines etc. Entrepreneurial ability:Takashimaya has enhanced its food section, introducing new food ranges and new concepts to the boutiques. Spillover Principle From passage: Mr Yamaguchi said sales to Singapore residents grew at a tepid pace last year and he suggests this may be due to locals being drawn to the integrated resorts (IRs) including casinos.On the flipside, the IRs attracted more tourists to Singapore and this benefited the retailer, which saw strong growth in sales to tourists in 2010. Positive spillover: IRs attracted more tourists which in turn drives customers (tourists) to Takashimaya increasing and improving the sales. QUESTION FOR GE ARTICLE 1. The article said that party chosen to govern Singapore will affect the Housing price. Is this a Fallacy that Association is Causation? Why? 2. What if another party is selected to govern the county? What is the positive or negative spillover?