https://padlet.com/acjc/lg1e04gqgordzaqb en-us 2023-03-21 02:12:15 UTC 2026-01-01 02:14:03 UTC hello@padlet.com https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534349062 i love econs frrrrr


when there is a higher goods and services tax, prices of the bubble tea increases for the consumers. The quantity demanded will decrease.
For producers, when there is a higher goods and service tax, the cost of production increases leading to a leftward shift in the supply curve as supply decreases. There will be lower household income for producers d and consumers.]]> 2023-03-28 03:54:08 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534349062 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534356502 2023-03-28 04:01:47 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534356502 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360101 As citizens’ average household income decrease, their purchasing power decrease and quantity demanded decrease. With higher Good and Services Tax (GST), it directly affects the producers and they will be less willing to produce bubble tea, decreasing quantity demanded. At initial price P, there is a shortage (Q1-Q01), causing an upward pressure on price by the law of demand. The quantity of bubble tea will also decrease by law of supply and the price remain constant. At new market equilibrium Y, it will reach new equilibrium quantity, Q but its price remains constant. ]]> 2023-03-28 04:05:52 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360101 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360327 2023-03-28 04:06:09 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360327 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360993 When there is higher Goods and Services Tax, the production cost of bubble tea increases, assuming that the producers are profit maximising they will decrease the supply of bubble tea and hence supply curve shifts to the left. When there is negative economic growth, the household income decreases and hence disposable income decreases. This makes consumers less willing and able to purchase consumer goods such as bubble tea. The demand for bubble tea will decrease and demand curve will shift to the left. 
At initial price Po there is a shortage of units causing upwards pressure on price. When price increases, quantity demanded decreases by law of demand. Gradually, the quantity supplied will increase by law of supply. Price will continue to increase until P1 until all shortage is cleared. 
Therefore, since demand decreases less than supply decreases, overall price of bubble tea will increase and quantity will decrease. ]]> 2023-03-28 04:06:57 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534360993 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534361741 2023-03-28 04:07:45 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534361741 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534363459 2023-03-28 04:09:54 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534363459 https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534363605 Due to goods and service tax, the cost of production increases. Bubble tea firms begin to produce less bubble tea as it is now more expensive to produce bubble tea. This results in a leftward shift in the supply curve. 

Due to negative economic growth, people would have a lesser household disposable income, hence people will be less inclined to buy bubble tea, which is considered a luxury good. As a result, less people will buy bubble tea and thus there is a shift to the left in the demand curve.

However, the supply curve will shift to the left more than the demand curve as the portion of income put aside to buy bubble tea is very little, so people will not forgo purchasing bubble tea so easily. The supply curve will shift more to the left as bubble tea firms would want to cut down on the cost of producing more bubble tea. Since the quantity supplied is lesser than the quantity demanded at the original equilibrium price, this results in an upwards pressure on the price of bubble tea as there is a shortage in bubble tea. With the increase of price, consumers will respond by decreasing quantity demanded, whilst producers respond by increasing quantity supplied. The price of bubble tea will continue to increase until shortage is removed, ultimately resulting in an increase in the price and a decrease in the quantity of bubble tea in the market until a new equilibrium is reached.]]> 2023-03-28 04:10:06 UTC https://padlet.com/acjc/lg1e04gqgordzaqb/wish/2534363605