Question 1
Consider Figure 1 below, which depicts the rubber market in Malaysia. At the initial market equilibrium, the total quantity produced is 500 kg per year and the average price is RM7 per kg.
(a) A sudden increase in demand for rubber causes the demand schedule to shift from D to D*. Explain the adjustments in prices and quantity that would take place after the increase in demand
(b) Calculate the price elasticity of supply for rubber, and comment on the degree of elasticity
(c) There is a sudden and drastic change in weather conditions, causing the supply of rubber to fall from S to S’ (Figure 2 above). Compute the price elasticity of demand, and comment on the degree of elasticity
(d) Seeing that prices have increased to RM17, the government considers setting a price ceiling policy to stabilize prices. Explain the effects of this policy if the price is fixed at RM18
(e) Elaborate on the effects of the price ceiling policy if the price is fixed at RM10. Explain if your answer differs from part (d)
Question 2
(a) Explain the effects of a price floor policy on the welfare of producers and consumers
(b) Elaborate on the concept of economies of scale
Question 3
(a) Contrast between perfect competition and oligopoly (20 marks)
(b) Distinguish between monopoly and monopolistic competition
MPOM7103 Assignment: Strategic Decision-Making and Operational Resilience in Petronas Amid Energy Transition
Read MoreMPIB7103 Assignment: Critical Perspectives on International Business Strategies and Regional Integration
Read MoreMPHR7113 Assignment: Strategic HR Analysis of Golden Heritage Café (HRM)
Read MoreTHEA1013 assignment: Theatrical Storytelling: Exploring the Unique Power of the Stage
Read MoreBusiness Strategy Assignment: Strategic Expansion: A Business Outlook
Read MoreGSGM7324 Assignment: Organisational Development and Change Management
Read MorePHY098 LOD 2, C4 Assignment: Mitigating Damage to Electrical Appliances from Lightning Strikes
Read MoreBM070 Business Research Assignment: Business Report Framework for Corporate Development
Read MoreHBET1203 Assignment: Comparing Pronunciation of Selected Words in Text and Reading to Standard British English
Read MoreIdentify key technological challenges affecting e-invoicing adoption in Malaysia.
Read More