https://padlet.com/loohjianing_ef/pujhwyluagbi Looh Jia Ning (S10170156K) Gan Jia Xin () Constance Chong Kai En () Loh Cher Shien (S10170821C) en-us 2016-12-23 00:13:37 UTC 2017-01-25 10:58:55 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Growing.png loohjianing_ef https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/144723526 This article states that the COE of cars in Singapore will rise, with the COE prices of small cars to rise up by 3.6% and the COE prices of big cars to rise up by 10.6%.

With the significant rise in the price of COE, consumers' demand for cars will decrease due to the concept of 'Law of Demand', as there is an inverse relationship that exists between the price of  car and the quantity demanded of car. 

Given that the price of public transport (cars) are rising, consumers may opt to buy lesser of it and consume alternative goods such as public transport (bus and trains), which are relatively cheaper. To add on, public transport fares are reduced by an overall of 4.2% as evident from our third article. As such, the quantity demand for private transport (cars) will further decrease, due to the determinant of demand, price of substitute. 

 To add on, the rise in COE price might be a price floor implemented by the government. The price floor occurs as there a period of falling COE prices occuring from August 2016 (Small Cars 2nd COE bidding: $53,334, Big Cars 2nd COE bidding  $56,500) to December 2016 (Small Cars 2nd COE bidding:  $49,751 , Big Cars 2nd COE bidding  $51,109 ). The price floor could be implemented to prevent the prices of cars to decrease further and also for the government and producers to gain more revenue in the form of COE price tax.

Generally, consumers' demand are very responsive towards the price changes of cars. This is due to the determinants: greater proportion of income spent on cars and a luxury compared to a necessity. Thus cars tend to be price elastic, and a percentage change in price of cars will result in a larger percentage change in the quantity demanded for cars. Given the recent rise in prices of COE, car producers and sellers will suffer a loss in total revenue as there will now be a larger percentage decrease for consumer's demand of cars. 

]]> 2016-12-23 00:23:39 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/144723526 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/144933639 2017-01-01 13:38:59 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/144933639 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145195826 From the article, I can infer that prices of bus and train fares  are declining. 

This can increase the demand for such transport. This is due to the inverse relationship between price and demand for that good. Since price falls, demand for transports such as train and bus will therefore increases. 

For instance , The senior citizens will have a reduction in their bus fare by $0.01 to $0.07 . The fare for students will be  lowered by 1 cent. Besides, the fare will be measured based on the shortest route rather than the fastest route to get to the specific destination . 

Since taking the bus or train is a habit for many , the demand for taking bus or train  is price inelastic .

 Besides, taking the bus or train is a necessity for many. It is not a luxurious item , hence , the quantity demanded will not change much when there is fall in prices. 

Next, the proportion of income spent on bus and train is small, hence the lower the proportion of income spent on bus and train fare , the less price elastic the demand for them will be . However , we can argue that the demand for bus or train is price elastic as there is availability of substitutes such as taxis  (Uber, GrabCar) and private transport (cars, motorcycles).

Overall , the demand for bus or train is price inelastic due to the points listed above. 




]]> 2017-01-04 04:43:39 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145195826 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145195908 2017-01-04 04:46:28 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145195908 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197359 COE falls at the end of 2016...]]> 2017-01-04 05:31:09 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197359 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197418 Consumers buy more vehicle at the end of 2016...]]> 2017-01-04 05:32:39 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197418 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197877 2017-01-04 05:44:40 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197877 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197934 2017-01-04 05:46:09 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145197934 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145199506 The rise in parking fees have garnered  mixed reactions from  people.

The article states that , "Overall rates increased by 10 cents to 20 cents per half hour, depending on location." 

I can infer that this was due to the inverse relationship between price of parking fee and demand for car park spaces. When the price of parking fee increases, the demand for parking falls.
 This is evident as Mr Richard Cho, a watch dealer saw a 20 percent drop in the number of walk-in customers. 

This article also covers another topic , Elasticity . 

Firstly , since parking a car is a necessity for many , and not a luxury , a rise in price of parking fee will not affect much of  the quantity demand for it .

Secondly , the proportion of income spend on parking is relatively less than other goods and services such as going overseas. Hence, the demand for parking is price inelastic.

Thirdly , it is a habit for car drivers to park their cars at a parking lot when they are outside. Since it is a habit , then the demand for parking is price inelastic. 

A spillover effect for this case is that the public will find the car park more vacant and thus more accessible for them to walk across the road. For example, Mr Tng Kim Guan, a motorist mentioned in the article was initially unhappy about the rise in parking fee but was later appeased by the fact that less cars are parking in the car park.

]]> 2017-01-04 06:39:57 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145199506 csloh12345 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145675945 2017-01-06 13:41:26 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/145675945 ganjiaxin99school https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/146267146 Small cars (up to 1,600cc and 130bhp) - COE price increased from $48,000 to $49,751. (3.6%) 
For big cars (above 1,600cc or 130bhp)- COE price increased from $46,229 to $51,109. (10%)
Open category- COE price increased by $379 from $50,010 to $50,389.

There is a significant increase in the number of bids for all three categories.

Factors contributing to this increase in COE prices: 
1. Falling COE prices from past months increases demand from buyers.
2. There a many cars due to be scrapped in 2017, resulting in an increase in demand from buyers. 

COE premiums are expected to remain firm next year as there is an increasing demand from companies like Uber and Grab. 

Meanwhile, 
motorcycles fell by $12 to $6,101, and that for goods vehicles and buses dropped from $51,209 to $49,500. (3.3%)


]]> 2017-01-10 15:01:42 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/146267146 gry2 https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/146445727 Public transport is a broad category.

You can think of Bus and Trains as two separate markets. And those two goods would be (partial) substitutes for each other.

Otherwise, articles and topic looks ok.]]> 2017-01-11 08:32:07 UTC https://padlet.com/loohjianing_ef/pujhwyluagbi/wish/146445727