BBM102: Microeconomics Assignment, WOU, Malaysia Consider Figure 1 below, which depicts the rubber market in Malaysia At the initial market equilibrium
| University | Wawasan Open University (WOU) |
| Subject | BBM102: Microeconomics |
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
Get Help By Expert
Are you pursuing BBM102 Microeconomics at Wawasan Open University (WOU)? When it comes to academic excellence, turn to Malaysian Assignment Experts for unmatched support. Our dedicated team at Assignment Helper My specializes in assisting WOU students with their coursework. Whether it's assignments, projects, or research papers, we've got you covered. Besides, this you also hire our skilled writers for MBA Assignment Help.
Recent Solved Questions
- Frank Martin is the sole owner of Valiant Cycle, a bicycle shop business which he started two years ago: finance, Assignment, IIU, Malaysia
- Unit 3 – International Marketing Management
- KT24403: Operating Systems Assignment, UMS, Malaysia There are N philosophers and N forks, the philosophers represent processes and forks represent resources
- BAO2203: Corporate Accounting Assignment, VU, Malaysia Consolidated Financial Reporting The purpose of consolidated financial statements is to ‘present the financial affairs of a parent company
- Critical Thinking Communication Assignment, UMS, Malaysia The authors sought to understand the types of parent involvement that teachers, parents, and students believe affect
- DMT5023: Statistical Analysis Assignment, MSU, Malaysia Develop an SPSS data set based on Table 1 with a minimum of 100 responses
- Public relations Assignment, UTAR, Malaysia You need to find a news story in the media that discusses (explicitly or implicitly) the effects of public relations
- Based on the short story Lamb to the Slaughter by Roald Dahl: Introduction to literature Assignment, UNM, Malaysia
- TSE2231: Software Engineering Fundamentals Home Work, MMU, Malaysia MMU has recently set up to provide state-of-the-art research facilities in Computer Science. Apart from students
- Computational Thinking Assignment, MU, Malaysia Computational thinking is an approach to problem-solving that involves critical and logical thinking in order to solve problems
