Wednesday, April 20, 2011

TAXI !

Summary:

Malaysia and Indonesia, two of the largest producers of palm oil, are facing adverse weather conditions leading to a decrease in supply of palm oil. Their tropical forests were also prevented by the European Union's Renewable Energy Directive to be cleared away to produce raw materials for biofuels. Since there is a drop in supply, price of palm oil will increase. Thus taxi drivers have to impose a fuel surcharge so as to even out earnings.


Click to enlarge image.
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12 comments:

  1. lijunApril 20, 2011 at 9:10 PM

    I don't get it! Why diesel then palm oil? What has the elasticity of diesel relate to palm oil?

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  2. zhao mengApril 20, 2011 at 9:16 PM

    palm oil is used to make diesel

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  3. lijunApril 20, 2011 at 9:46 PM

    ohokayokay, i feel so stupid now!

    ReplyDelete
  4. lijunApril 20, 2011 at 9:46 PM

    anyway, what are we suppose to comment on?

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  5. kelzApril 20, 2011 at 10:03 PM

    wah... who drew all the graphs?

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  6. PurpleLoves<3April 21, 2011 at 6:25 PM

    I did !
    HAHAHAHA , NICE RIGHT ?!
    Or wrong ? :S

    ReplyDelete
  7. VictoriaApril 22, 2011 at 6:52 PM

    For the palm oil graph thingy when the price change the Dd will decrease to a small extent right? O.o

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  8. VictoriaKateApril 23, 2011 at 12:37 AM

    Will the government intervene and place a cap on taxi prices? So that taxi fares wouldnt be that high?

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  9. zhao mengApril 23, 2011 at 10:28 PM

    They wouldnt since this increase in pri
    ce is still considered affordable to most singaporeans

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  10. shi rongApril 24, 2011 at 2:51 PM

    can the govt intervene?

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  11. dwenApril 24, 2011 at 10:19 PM

    if u wana sae tat price wil not affect demand in e first picture den demand shud b perfectly price inelastic(Ep=0).anw in tis case it shud b Ep<1 bcuz it has crude oil as a substitute,so dd will decrease to a less dan proportionate extent..i tink.lol.correct me if im wrong:D

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  12. zhao mengApril 25, 2011 at 8:45 AM

    I was talking about the second one. The fuel surcharge is actually fixed at 50 cents.

    ReplyDelete

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