This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email

Drinks on the Cheap

Drinks on the cheap
By Cara Van Miriah

THE economy may be gloomy, but drinkers are saying cheers - to bargain booze, that is.

Cash-crunched Singaporeans with a taste for the grape have been drowning their sorrows at home by downing cheaper wine from supermarkets and wine stores, going by increased sales figures.

And nightclub-goers who used to imbibe expensive spirits are switching to cheaper drinks like beer instead. Beer suppliers such as Denmark's Carlsberg and homegrown Asia Pacific Breweries - whose brands include Tiger Beer - say sales of beer have gone up recently.

Explain (if possible illustrate with diagram) how this will affect demand and supply.