Petrol price are getting higher and higher.

          According to the star online Sept. 2012 RON 97 price increase to RM 3 per liter.

          Malaysia has many kind of petrol, RON97 are one of it, RON 97 is higher quality depend on other petrol.

           Following the worlds fuel price in the market, petrol price often rise up, now petrol price is getting more higher and higher, but whenever petrol price is getting higher and higher consumer still willing to buy petrol, because petrol is inelastic, don’t have alternative goods for petrol, if our car didn’t pump petrol our car can’t move so we really depend on petrol.

          As we can see in the graph whenever the price is change the demand still remaining the same, this is because petrol is inelastic goods, so it will not affect to Petrol Company. Inelastic is when the goods or service are change is not affected to supply and demand. We also can see inelastic in cigarettes, all the addicted to cigarettes will willing to pay as much as they can to buy cigarettes so if the price of cigarettes increase it just affected small amount of demand, but it’s different to elastic goods, like sample if the price of apple is increase the demand of apple will decrease it’s because apple is elastic, when can buy other thing to replace apple like banana, orange and other fruits, we also can stop consume apple.

So if RON 97 price increases to RM3 not affaect6ed to petrol company but it will affected to us, especially to student or lower income people, for student whenever the price is high we also must buy it if not we cannot drive to school and attended the class, but we can’t say to our lecturer” our car don’t have enough petrol because the petrol price is high”.is also same with working people who drive to work, they also must work every day, so they still must buy the petrol, whenever the petrol price is high working people wages also not change higher.

          Actually we use public transportation like bus, train(KTM,LRT,monorail) or taxi, bus and train is more cheaper ,but the time table is not accrued especially KTM, in ktm station time table is not accrued and the differences of the time is too far, so we will late to class or work, it’s also too many people take bus and train going to work, we will stand in the bus or train, the worst if the bus or train very full we will squeezing  in there, you will hard to breath ,after that our clothes become messy, it’s really bad for working people, because they must wear tidy clothes to work, they also need meet their client if they dress up messy they give their company bad image, if the bus and the train are full the driver also don’t allowed us to get in into the bus or train so we must wait to next train or bus, if we lucky we can just wait for 2-10 minutes but if unlucky we will we 30minuttes or maybe 1 hours , and sure we will be late. Bus and train also can’t reach some place, so if our working place or school can’t reach by bus or train so we must think another way, and we just can take taxi but taxi fare its really expensive, the minimum rate are RM3 ,from subang to KL if we take bus or train just cost us RM3 but if you take taxi will RM20-RM30,if jam maybe RM50-RM70,but bus and train not charge u more when jam, but the consequences u must take risk with the time, in Malaysia some taxi is illegal they don’t use meters they just tell u the price before you get in to taxi, the price will more expensive to the meters taxi, maybe they will charge u double or triple this is because in your area hard to find meters taxi so the illegal taxi will take a chance to earn more.it prove that driving car is the best way to going class or work.

          Ron 97 price go up will affected many thing price go up, as we can see in Malaysian when government announce tomorrow petrol price go up and in the tomorrow morning many of this price is up like vegetables, fruit, meat, rice, maybe bus fare, taxi fare, train fare, bread and many all things, when we ask the seller why the price of apple goes up they will say because petrol price is goes up, because from farm to market they must need lorry to pick up and lorry need petrol.

           Many of farmer also didn’t want sell their fruit vegetables to the city because the cost of lorry is high, so they just sell to the nearest area, because of it in the city lack of fruit and vegetables the demand are more than supply and become shortage, every one willy to pay more for get fruits and vegetables .

       As we can see in the graft the price of food and vegetables will go up if the demand more than supply. The demand shift to the right and the supply shift to the left.

       we can see when the government announce the petrol going up by next week ,and in this week all people are buying petrol as much as they can so the petrol demand were increase, and will shortages, and this will causes black market. Black market is an illegal market in which the price exceeds the legally imposed price celling, price celling or price cap is a regulation that makes it illegal to charge a price than a specific level.

         As we can see in the graph 2 the quantity demanded are lesser than quantity supply so the amount between is shortages, so because of it someone is willing to pay a higher price.

          In conclusion RON 95 price up will just affected small amount of people to buying petrol it’s because petrol is inelastic goods, but it will affected price goods in the market like vegetables, fruits, meat, rice and others. And it will causes black market

by: hioe stephanie olivia

Nowadays feed baby are needed a lot of money

according to new straits times 5 Oct. 2012, price of infant formula milk up, some producers of infant formula milk have increase its price by as much as RM15 per kg here in the past two weeks, parents might have to fork out an additional RM 50 a month for the product, increases price of infant formula milk it's because the company improved the ingredients in the milk.

Infant formula milk is, is milk manufactured for baby food, commonly the make it to powder, we just need put hot water and shake it .maybe in Europe country it’s really hard to see infant formula milk they just sell fresh milk. but for us Malaysian, infant formula milk is so common, we can easily see it anywhere, and infant formula milk also very best seller in Malaysian, because many mother more trust infant formula milk than fresh milk for their baby, because the vitamin in the infant formula milk are suitable for baby.  

          breast milk is the best milk for infant but, most of working mother dependent of the infant formula milk, this is because some mother can’t produce their breast milk because some reason also working mother juts have less time to take care their infant so their prefer infant formula milk because more easily and not waste time, now if the price of infant formula milk up, household with young children were spending as much as RM 500 per month on milk.

          household is having income may cannot afford buy the same quantity  of infant formula milk as before as  infant formula milk is in a high price now, so price  of infant formula milk become elastic ,consumer will decreases the quantity of infant formula milk  buy or maybe they will stop buying infant formula milk at all.

When some household get higher income, they may afford to buy of infant formula milk no matter how high the price.

          Because infant formula milk is elastic, so there are many of substitute of infant formula milk in the market like instant baby food, instant baby food is cheaper and more vitamin and more variety of flavor.

          in the demand curve ,the demand of the infant formula milk will shifts to the left ,the equilibrium price will decrease, because infant formula milk is inelastic so consumer will have many alternative for baby food, if the price go up they will change to other alternative it's more cheaper.

          The alternative for infant formula milk is instant baby food ,we can get instant baby food easily in anywhere ,instant baby food become no 1 alternative because we can easily get it, more vitamin because the ingredients included vegetables, fruits and meat, they also have many variance of flavor than infant formula milk and off course more cheaper.

Because of this the demand of instant baby food is increase ,every mother who have baby or infant want buy it.so it become shortage, because the supply is laser than demand, after that the price will increase because no goods in the market, and it will causes of black market.

          As we can see on graft 2 if the supply are decrease and demand are increase it’s shortages, if shortages the price will increases ,if the price increases instant baby food no longer become one of the alternative for infant formula milk, so mothers must find another alternative food for baby.

          Other alternative is make they make baby food by they self, they mix rice, vegetables and meat together and cook it until very soft or cut fruits to the small piece and feed the baby, and this baby food is more cheaper and natural so all the mothers didn’t worry about the healthier because it not contain any chemical in the food. This way is usefully for mothers who didn’t go to work or housewife , if working mother they don’t have time to do all that think, because it spend a lot of time ,so working mother were willing to pay as much as they can to buy instant baby food or infant formula milk, so for the housewife they will change to traditional baby food which mean they will make the food by they self ,so it will causes the demand of the vegetables, fruit , rice and meat will goes up , so if the supply will remain the same and not increases it will become shortages ,but vegetables , fruits , rice and meat the supply is more increases that other goods, so this not will affected to the price .

          As we can see in the graph 3 both of the supply and demand are increases so is not affected to the price, the price will remain to the original price.

          So, consumer will change to other alternative goods and alternative baby food demand will increases but some goods the supply will not increases so become shortages and the price will also go up, but some goods when demand are increases the supply goods also will increases, this goods prices will remain to original price.

          Company of infant formula milk want to increase the demand, they must reduce their price, if their reduce the price the demand curve will change back to the normal because consumer are willing to buy the product, so the demand will increase to the normal, If the infant formula milk demand keeps decreasing the company will getting loss because the revenue is lesser than the expenses.

          In the conclusion infant formula milk price goes up, will affected many mothers but not all, the price will not affected working mother because they willing to buy although the price is high, because they don’t have time to go to the alternative baby food, but it will affected housewife because they have more time to think alternative baby food much cheaper than infant formula milk, they also can make baby food by their self.

Although vegetable ,fruit ,meat and rice can increases supply easily but they also have season, in some season like raining season or fry season the supply of fruits, meat and rice will decreases so it also will causes shortages and the price will go up.

price of infant formula milk must reduce, so most all alternative for infant formula milk also will reduce the price .so if the infant formula milk price are decrease all the consumer will willing to buy, and the alternative product price also back to the normal. If not, if the price still high and lowest income mothers will give their infant breast milk, because it’s free.

 by: hioe stephanie olivia

Supply and demand

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.