BBM 102: Consider Figure 1 below, which depicts the rubber market in Malaysia At the initial market equilibrium: Microeconomics Assignment, WOU, Malaysia

School

Wawasan Open University (WOU)

*We aren't endorsed by this school

Assignment Type

Individual Assignment

Subject

BBM 102: Microeconomics

Uploaded by Malaysia Assignment Help

Date

23/06/2022

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

Stuck in This Assignment? Deadlines Are Near?

Get Help By Expert

Assignment helpers Malaysia is the one-stop website for all your BBM 102: Microeconomics homework needs. We have a team of highly skilled writers who are available 24*7 and they provide MGT646 Quantitative Research Methods Assignment, DQS156 Principles Of Economics Assignment, HBU131 National Kesatria III Assignment, etc many more at a most reasonable price.

Answer

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now
Convincing Features
Plagiarism Free Report
On-Time Delivery
Native Writers
A+ Quality
100% Confidential
24*7 Online Assistance

Get these features included in Your Assignment

Get Assistance for Assignments, online Exam, and Projects Writing