Economics for Business Assignment Questions | NUS

Assignment Task

You are the head of a newly established economics consultancy and have been contacted by Ling. Ling has inherited some money and wants to invest it somewhere. Ling is thinking about two options: one is to open a budget-priced speciality cafe, the other is a premium fine dining restaurant in Singapore. Ling wants to receive advice about business decisions from the perspective of an Economist. Ling has 3 specific areas of concern that she needs you to address;

Assignment Task

A. Business Plan

Create a business plan for each of these options and attach it to your Assignment as an Appendix. You can choose your business plan templates.

B. Equilibrium Analysis & Elasticity

• You need to advise her on TWO factors which are likely to cause customer numbers (demand) to change for each of the businesses.
• (You will need to explain the distinction between shifts & movements in the demand curve, and show the relevance of demand elasticity, and explain what happens to the equilibrium price and quantity in each market)
• You need to show 2 different ways in which a fall in supply in a different market could lead to a change in supply for each of the businesses.
• (You will need to provide relevant examples & diagrams in your answer, and show the relevance of elasticity, and explain what happens to the equilibrium price and quantity in each market)

C. SWOT analysis

Conduct a SWOT analysis on each of the options, and discuss strengths, weaknesses, opportunities and threats.