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
- BBF305/03: Investment and Portfolio Management Case Study, WOU, Malaysia You are in a senior management position in a leading international funds management firm
- Enginnering Assignment, UMP, Malaysia Electrons or holes arc moved between two contacts by drift current in a Field Effect Transistor
- BBM203: Business Statistics Assignment, WOU, Malaysia Explain the difference between paired and unpaired samples in a hypothesis testing procedure involving two sample means
- English Home Work, UPM, Malaysia There have been large extinctions throughout Earth’s history. The most famous of these caused the end of the dinosaurs
- MGMT20001: Organisational Behaviour Case Study, UOM, Malaysia What suggestions do you have for the president on how to coach Jack in developing a personal improvement plan
- PGBM150: Innovation Entrepreneurship & Technology Transfer Assignment, UOS, Malaysia Students are required to submit their assignments through JIRA and Only assessments submitted through JIRA will be marked .
- STA60704: Probability Theory Assignment, TU, Malaysia
- ENT600: Technology Entrepreneurship Case Study, UiTM, Malaysia A case study is an account of an activity, event, or problem that contains a real or hypothetical situation
- Business Analytics Research Paper, SU, Malaysia This project is proposed to solve the business problem from a business/firm/company perspective
- Managing Secured Environments, Assignment, MU, Malaysia- Surveys indicate that many workers are reluctant to report unethical practices, including stealing in the workplace
