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
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
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
- Research Methodology Assignment, UiTM, Malaysia The unprecedented global event of coronavirus disease (COVID-19) struck in 2020, creating the worst downturn in Malaysian
- Bachelor of Marketing and Communication Case Study, OUM, Malaysia Based on your understanding of IMC, how do you think Apple has ingrained its marketing strategies
- FA113: Financial Accounting 1 Assignment, RCC, Malaysia The following is the list of transactions for the month of January 2020 for Comfort Furniture a small furniture retailer
- BBM206: Accounting and Costing Assignment, WOU, Malaysia San Bhd manufactures and distributes glassware in Malaysia. The following ratios are based on its financial statements
- MAT240S: Math’s Statistics Assignment, SU, Malaysia The following data was collected from a random sample of students These data represent their commuting distance (in km) per week
- Environmental Impact Assignment, UU, Malaysia Malaysia is a developing country. Rapid development, deforestation, destruction of mountains, and many other activities
- Analysis of Agile Organization Course Work, UMP, Malaysia Supply Chain Operational Performance can be defined as activities and processes involving transforming raw materials
- BBNG3103: Malaysia has been ranked as the 21st exporting nation in the world for year 2021: international business Assignment, OUM, Malaysia
- FIN30014: Financial Risk Management Case Study, SUT, Malaysia Identify ONE financial risk faced by Alphabet Inc given the above scenario Systematically review and critically evaluate research from a variety
- European Union Course Work, UM, Malaysia Italy has just passed an important piece of legislation designed to promote trade opportunities for Italian companies