1.0 Introduction of Question 1

Nowdays, there are many types of notebook in the market. Consumer can choose them by their preference and demand of notebook. An increase in demand for notebooks decline the quantity of demanded, but quantity supply constant. Everyone also have their desire to buy the more better notebook that have new function. If everyone income increase, the purchasing power, price and demand of notebook will increase, but supply also will increase. If the demand growing up but supply constant, it will occur imbalance the skill of economic. So, to make the economic be balance, the supply should increase.

1.1 Demand and Supply

Demand is the ability and willingness to purchase specific quantities of goods in a given period of time at a particular price, ceteris paribus. Demand differs from desire, want, wish and like. Supply is ability and willingness to sell or produce particular product goods in a given a period of time at particular price, ceteris paribus. Demand and supply

1.2 Agreement of Demand Increase Supply Constant

In task 1, the situation of demand increase supply constant are occurred in market of notebooks and been agree by many expert. This situstion will happened because of the limited edition of notebook. The reason of provide limited edition notebook because they want to maintain their quality of product so they will supply constant.

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1.3 Statistic of Worldwide Desktop PC vs. Notebook

It is a good news for consumers who are needed to replace the old Windows-based PC was that if a person search online he can still find refurbished for new desktop that has Windows 7 installed. Otherwise, continuing demand for PCs with the lead operating system was be weak. According to International Data Corporation (IDC), they predict now expects PC shipments to decrease further by 1.3 percent in 2013 year. The disappointed news is when holiday sales to consumers, this situation leading to a year decrease of 8.3 percent in fourth quarter shipments. Furthermore, an emerging market growth potential for PCs was also bleak. 2012 is the first year that the volume decreased. According to Loren Loverde, vice president at IDC,the desktop market is still looking for updated a new model to achives tow and demonstrate sufficient appeal to drive growth in a competitive market. To refer Appendix 1.

1.4 Conclusion

In conclusion, this task is about demand and supply of notebook. The situatution of demand increase supply constant because of supplier produce the limited edition notebook. When the demand increase supply constant so inbalance the skill of economic by increase supply. The problem solving are increase the supply of notebook or produce a new product. It can solve the problem of demand increase supply constant.

2.0 Introduction of Question 2

There have many type of coffee and tea shop such as Starbucks, Chatime ,The Coffee Bean & Tea Leaf , Dunkin Donuts and also include McCafe by McDonald. The substitute effect was occurring when the price of coffee increase then some people will go for tae and vice versa. Coffee and tea is not substitute goods because the tea demanded can monopoly the market of drink by itself. This provident is according to Kim Jage, she said tea is on the rise in the emerging market. Last but not least, according to John Fetto pointed out that the coffee affected by age like adolescence, elder and adult the market coffee is slowly improve only.