13427237
Description
Mind Map by Jia Jun Neo, updated more than 1 year ago
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Created by Jia Jun Neo
over 6 years ago
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Usefulness of YED
- Firms
- Luxury Goods
with YED > 1
- MTP ↑
in DD
- 2) Output
strategy
- Producers
will ↑ O/P
to ↑ TR
- Producers
will ↑ O/P
to ↑ TR
- 1) Pricing
strategy
- Producers
will ↑
prices to ↑
TR
- Producers
will ↑
prices to ↑
TR
- 2) Output
strategy
- MTP ↑
in DD
- Inferior Goods
with YED < 0
- MTP ↓
in DD
- 2) Pricing
strategy
- ↓ prices →
compensate
the ↓ in dd
- ↓ prices →
compensate
the ↓ in dd
- 1) Marketing
strategies
- Product mix & diversify
production into gds
with higher YED
- Product mix & diversify
production into gds
with higher YED
- 3) Output
strategy
- ↓ o/p
to ↑
TR
- ↓ o/p
to ↑
TR
- 2) Pricing
strategy
- 2) Segmenting
of markets
- Sell diff range
of pdts → suit
C of diff Y
- 1) Sell necessities
in mass-market
locations
- 2) Sell luxurious gds in
high Y districts
- 1) Sell necessities
in mass-market
locations
- Sell diff range
of pdts → suit
C of diff Y
- MTP ↓
in DD
- Y ↑
- Purchasing power ↑
- Purchasing power ↑
- 1) Responding
to Y Δ
- Luxury Goods
with YED > 1
- Govt
- 1) Determine
type of gds
to produce
- E.g housing indy
- Recession: ↑ in dd of
inferior gds, ↓ in dd
of luxurious gds
- ↑ SS of 3-room
flats & ↓ SS of
executive condos
- ↑ SS of 3-room
flats & ↓ SS of
executive condos
- Recession: ↑ in dd of
inferior gds, ↓ in dd
of luxurious gds
- E.g housing indy
- 2) Forecast revenues
for budget planning
- E.g predict the
extent of ↑ in
DD for COEs
during EG
- → forecast
COE px &
Govt revenue
- → forecast
COE px &
Govt revenue
- E.g predict the
extent of ↑ in
DD for COEs
during EG
- 3) Industrials
SSP
- Determine LT growth
propsects of Indy
- → guide decisions
on which indy to
allocate resources
- → guide decisions
on which indy to
allocate resources
- Determine LT growth
propsects of Indy
- 1) Determine
type of gds
to produce
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