The Cross Elasticity Of Demand For Group Economics Tuition And Individual Economics Tuition

Economics tuition is a topical issue in Singapore. Every year, over 10 thousand junior college students in Singapore take economics tuition. However, although some take group economics tuition, others take individual economics tuition. Indeed, there are some students who take both group and individual economics tuition from the same economics tutor. The last case may seem baffling to some people. However, if we take into the cross elasticity of demand which is topic that is taught by every economic tutor in their economics tuition class, it will appear normal to most individuals.

Group Economics Tuition and Individual Economics Tuition as Substitutes

Economics tuition has a high degree of necessity for junior college students who take economics as part of their subject combinations. The A level examination questions are getting tougher with each passing year. This trend started about a decade ago when the examiners adopted the strategy of making the examination questions harder with the objective of differentiating between the better students and the weaker ones. As a result, students find it increasingly harder to cope with the subject on their own which has prompted them to seek external help for the subject. The cost of individual economics tuition is very high in Singapore. An economics tutor with teaching experience in a school charges somewhere between $300 and $400 for one lesson with a duration of two hours. Although wages in Singapore are higher than those in many other countries, most families are unable to afford the cost. The cross elasticity of demand for group economics tuition and individual economics tuition is positive. This means that the two goods are substitutes which are used in place of one another. It follows that families who are unable to afford individual economics tuition can opt group economics tuition which is the cheaper alternative. An economics tutor in Singapore charges somewhere between $300 and $450 for a month with four lessons, which is a fraction of the cost of individual economics tuition. This explains why there are a far greater number of students taking group economics tuition compared to those taking individual economics tuition.

Group Economics Tuition and Individual Economics Tuition as Complements

Although most students take economics tuition on either an individual or a group basis, some take it on both an individual and group basis. At first thought, this may seem baffling to some. However, there are good reasons for taking both individual and group economics tuition. For example, a student in junior college year 2 may realize pretty late that they need external help for economics. In such a case, the student may find it helpful to take group economics tuition to gain a better understanding of the topics which will be taught. At the same time, they may find it helpful to gain a better understanding of the topics which they have missed by taking individual economics tuition. As an economics tutor specializing in A level economics tuition, I have personally taught no fewer than a dozen students who joined my group economics tuition and engaged my individual economics tuition service simultaneously. A close friend of mine, who is a well-known economics tutor in Singapore, also has the experience of teaching students who engaged more than one of his economics tuition services. In this case, the cross elasticity of demand for group economics tuition and individual economics tuition is negative which means that the two goods are complements which are used in conjunction with one another.

What has been discussed above is just one of a myriad of goods which are substitutes to some people but are complements to others.

Keith Quek

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