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
- MUF655: Research Project Case Study, UTM, Malaysia Why are creative abilities being neglected in today’s society? Some claim that music education is a waste of money and time
- Introduction to Networking Assignment, UiTM, Malaysia SudaJayaTech is a premier enterprise software company offering multiple products at scale both in the enterprise arena
- Business Statics Assignment, SU, Malaysia In 2004, ratings are compiled concerning the performance of new cars during the first 100 days of use
- BMK307: Jesse Parker sells for Mid-East Metals. He has been callingvon Richmond Distributors for close to two years: Personal Selling and Salesmanship Assignment, Malaysia
- DGM40102: Plant Maintenance Report, PM, Malaysia Apply the fundamentals of plant maintenance knowledge in related industries. Perform the plant maintenance working flow
- Unit 1: In your organization, what differences do you notice in recruitment in Post COVID-19 time, when you compare that with pre-COVID-19 time: Human Resource Management, Assignment WOU, Malaysia
- BBUN2103: BUSINESS LAW Assignment, OUM, Malaysia Evaluate the circumstances that occur prior to the formation of a contract that may impair the validity of the contract.
- HTM705: Strategic Marketing for Hospitality and Tourism Essay, CU, Malaysia It is apparent that in the 21st-century marketing environments, companies are drastically altering their business
- Financial Management Assignment, UKM, Malaysia According to the SME Corporation Malaysia, SMEs are defined as firms with sales turnover not exceeding RM50 million
- Finance in Action Assignment, HWU, Malaysia Collect data on a range of financial instruments (including shares, indices, currencies, and cryptocurrencies
