This semester we will be diving into our new units on Price Elasticity of Demand (PED) and Price Elasticity of Supply (PES). Students will get to see just how important these concepts are in the marketplace. Students won't just get to grips with economic theory; they will also gain a better understanding of how consumers and producers act and react.

PED helps us understand how much the demand for a product changes when its price does. On the flip side, PES measures the change in the quantity supplied when a product's price changes. Grasping these ideas is essential for interpreting market signals and making informed decisions, both in business and as consumers.

To illustrate the concept of inelastic PED, consider an essential and time-sensitive product like emergency medical kits, which have no real substitutes. Imagine a scenario in Econotown during a health scare. The residents realised the importance of having a medical kit due to an unexpected outbreak. Despite a price increase by the only retailer in town, people continued to purchase the kits. The demand for medical kits remained steady despite price changes because they are essential, needed urgently, and lack any true substitutes.

This example shows us how certain products, especially those tied to health and safety, maintain steady demand regardless of price changes. During our lessons, we will investigate different market scenarios, engage in role-plays, and analyse case studies to see how PED and PES come to life beyond the textbook.

The concepts of Price Elasticity of Supply (PES) and Price Elasticity of Demand (PED) are invaluable tools for governments and suppliers. For policymakers, these elasticities provide a roadmap for anticipating the consequences of taxation, subsidies, and price controls. By gauging PED, a government can predict how a tax on cigarettes might decrease consumption, or conversely, how inelastic demand for essential medicines can result in minimal usage change despite price hikes.

On the supply side, PES is a beacon for understanding how quickly producers can respond to market changes. For suppliers, mastering PED means grasping how pricing strategies can affect their sales volume. A deep understanding of demand elasticity helps suppliers set prices that maximise revenue without alienating customers.

In essence, PES and PED are not just academic terms; they're the sinews and muscles that flex with every market pulse, guiding both governments and suppliers through the intricate dance of economic decision-making.

The students of Grade 10A class came up with a brilliant idea to test their knowledge of economics terms in a fun and interactive way. They organised a game called "Guess the Term," where teams had to describe a specific economics term within a limited time frame, and their teammates had to guess the term based on the description. The objective was to reinforce their understanding of key concepts and specialised vocabulary while having a great time.

By participating in such interactive activities, our Grade 10A class is not only reinforcing their knowledge but also developing important skills such as critical thinking, problem-solving, and effective communication. These skills are fundamental in the field of economics and will benefit them in their future academic and professional endeavours.

The game was highly competitive, and the teams put their knowledge to the test. They used various strategies to describe the terms, including drawing diagrams, using analogies, and providing real-life examples. This not only helped them recall the definitions but also encouraged creative thinking and effective communication within the teams.

The students thoroughly enjoyed the game, and it provided them with a unique opportunity to apply their theoretical knowledge in a practical context. It also fostered teamwork, as the players had to collaborate and coordinate their efforts to successfully convey the meaning of the terms. The activity not only made learning economics more engaging but also strengthened their grasp of specialised vocabulary.

After a pleasant vacation, our students have quickly adjusted and entered the next semester of learning. This week, we focused on government policies in macroeconomics.

During our studies, we took the example of the tax reduction policy implemented in China after the COVID-19 pandemic, such as lowering personal income tax and corporate income tax rates. This would provide individuals and businesses with more disposable income. Individuals may choose to increase consumption, purchasing more goods and services, thereby stimulating economic growth. Meanwhile, businesses may utilise the tax reduction policy to increase investment and expand production scale, creating more employment opportunities.

However, tax reduction policies can also have an impact on fiscal conditions. By reducing tax revenue, the government may experience an increase in fiscal deficits, where government expenditure exceeds tax revenue. To address fiscal deficits, the government may need to take other measures such as increasing borrowing or reducing other expenditures. For instance, in October 2023, the government issued 1 trillion Yuan in national bonds, which were allocated to local governments through transfer payments. Students also recognised that when formulating economic policies, the government needs to balance conflicting objectives and strive to find a middle ground.

To enhance the students' learning experience, we utilised the Fiscal Ship website. Students were required to choose three economic aims, considering economic conditions, social needs, environmental protections etc. They were encouraged to make flexible adjustments based on the circumstances to adapt to the ever-changing economic conditions and goals.

The Grade 11 students have been diligently preparing for the NEC National Economics Challenge, utilising their winter break to get a head start on studying some of the advanced economic concepts typically covered in Grade 12. They displayed great initiative and motivation by taking the initiative to learn ahead of time and equip themselves with the necessary knowledge and skills to excel in the competition.

Upon returning to school, the students have been utilising their weekly CCA on Wednesdays to conduct in-depth research on various economic topics related to the competition. They have formed study groups, engaged in lively discussions, and collaborated on analysing case studies and solving complex economic problems. This collaborative and research-oriented approach has not only enhanced their understanding of economics but has also fostered teamwork and critical thinking skills.

The Grade 11 students serve as excellent role models for their peers, demonstrating the importance of hard work, determination, and a proactive approach to academic pursuits. Their dedication to mastering economic principles and their commitment to continuous learning have set a high standard for all students to follow.

As the NEC National Economics Challenge approaches, we want to extend our best wishes to our Grade 11 students. We believe in their potential and are excited to see their achievements in the NEC National Economics Challenge!