https://padlet.com/s10168858/p7axl7e2c1p3 en-us 2018-01-06 08:01:52 UTC 2025-11-01 02:45:18 UTC hello@padlet.com s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219128824 Determinants of Price Elasticity of Demand
Availability of substitutes in consumption
- Besides owning a car,  people are now able to opt for private car hire services such as Grab and Uber
- Grab and Uber offer services at a pretty affordable price especially for regulars
- Bike sharing and electric car sharing are also other affordable alternatives  to substitute the use of cars in Singapore 
- Given these many substitution, demand of car would be price elastic
- An increase in price of cars would drive people to ditch the idea of purchasing a car and opt for the substitutions instead, causing demand of cars to drop]]> 2018-01-07 09:37:40 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219128824 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219130054 2018-01-07 09:58:48 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219130054 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219133393 2018-01-07 10:42:32 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219133393 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219238251 A1
- Singapore's annual car growth rate will be cut to 0% from February 2018 onwards
- No new COE will be issued, one addition of a new car will cause 1 car to be deregistered
- COE supply is fixed

Number of buyers in the market
- Singapore's population is increasing given the flexibility in immigration and efforts of promoting population growth by the government
- fixed supply, demand will definitely increase, demand curve shift right, price equilibrium increase, quantity equilibrium remains unchanged, market equilibrium increase

Tastes and preferences
- other mode of transport is mainly the public transport
- however in recent years,  MRT breakdowns and delays has been frequently happening
- travelling time is unpredictable and can be extremely long and unbearable
- faith and trust of commuters are affected
- if the public transport systems improves and becomes seamless, the demand of cars will decrease and the demand for COE will also follow through, since people can now opt to use public transports instead
- if the public transport system is still not well-liked and preferred, we will continue to see a rising demand for cars and people forking out money to renew COE and bidding for it
- also the arrival of latest model or cars

Expectations of consumer
- private hire companies looking to expand their fleet
- proportion of car owners would become lesser than commuters reliant on such services
- demand and price of cars is expected to increase in the near future
- may cause panic buying now with people rushing to bid for a cheaper COE now before it is too late

Money Income
- despite the high price of COE premiums and financing a car, many Singaporeans are still willing to fork out money to buy one
- strong economy = better pay = better purchasing power
- when the economy is strong, money income increases, stronger purchasing power, demand for car increase, demand for COE increase, number if bids increase, price of COE increase, price of car increase
- when the economy falls into recession, money income decreases, weaker purchasing power, demand for car decrease, demand for COE decrease, number of bid decrease, price of COE falls, price of car decrease

]]> 2018-01-08 06:54:55 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219238251 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219334142 Car Spillovers:
Positive:
According to the articles, the number of supply and demand of the COE has decreased.
- This means that there will be lesser air pollution emitting from the vehicles and noise pollution produced by the vehicles.
- Lesser traffic congestion and traffic accidents
- Lesser usage of petrol and energy dependence

Negative:
However, this also means that there will be more people taking the public transport instead.
- This causes the public transports to become more crowded than usual
- More delays when taking public transport during peak hours
- Commuters are required to wake up earlier to take the public transport as the time taken to reach work is relatively longer compared to using a car

Production Possibility Frontier (PPF)
Based on the articles, we can assume that the while the number of cars produced will either remain the same or have a small increase in production. The number of computers produced however, will increase significantly as more resources will be added to the production of computers instead of cars due to the decrease in supply of COE. The chart below simulates what might happen in the PPF curve.

]]> 2018-01-08 13:42:27 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219334142 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/219361585 2018-01-08 14:39:18 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/219361585 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/221231615 A3
Category A
- the monthly average number of COE available has reduced from 3797 pieces in the 2nd quarter to 3630 pieces in the 3rd quarter
-4.4% drop in quota
-COE prices increased from $44 002 - $46778

Category B
- the monthly average number of COE available has reduced from 2641 pieces in the 2nd quarter to 2570 pieces in the 3rd quarter
- 2.7% drop in quota
-COE prices increased fom %50 001 to %53 711

- Smaller quota = smaller supply = supply curve shift left
- increase in money income and increase in population = more buyers in the market = demand increase
- supply not able to meet demand 
- supply curve shift left, demand curve shift right, COE price equilibrium increase
- price of COE increase, quantity demanded for COE decrease, upward movement along COE curve]]> 2018-01-14 08:09:25 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/221231615 s10168858 https://padlet.com/s10168858/p7axl7e2c1p3/wish/221232241 A2
- factor that determine COE supply are the standard of annual vehicle growth rate based on the vehicle population at the end of the year, replacement of COEs from vehicles deregistered in the preceding three-month period and the changes in the taxi population, replacement of commercial vehicles under the Early Turnover Scheme, and expired COEs.
- rather than purchasing a new car which is more expensive, people rather renew COE
- increase in number of renewed COEs = decrease in supply of COE = price of COE increase = price of cars increase 
- price of cars increase = sellers would want to sell more cars = supply of cars increase]]> 2018-01-14 08:23:49 UTC https://padlet.com/s10168858/p7axl7e2c1p3/wish/221232241