tag:blogger.com,1999:blog-52859360794843164932024-02-22T23:43:31.843-08:00EconomicsKolej Profesional MARA's versionamirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.comBlogger68125tag:blogger.com,1999:blog-5285936079484316493.post-27308301647868309802012-11-14T03:06:00.001-08:002012-11-14T03:08:29.844-08:00Profit in Perfect Competition Market<div style="background-color: cyan; color: magenta;">
Short-run profit in perfect competition market</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
In the short term, perfect competition market will have three different types of profit</div>
<div style="color: blue;">
such as supernormal profit, normal profit and subnormal profit.</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="background-color: lime; color: blue;">
<b>A. Supernormal Profit </b></div>
<div style="color: blue;">
<br /></div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUdhpKuP1xVRXHjKBlaK-y_8ew_7w6sccgl5yIpA5SFuQmbv51mgdS-S5Wk1yAGwOFucpP5LQF1qfCXcZ9mH6LK5JEq8juuuFFjx9P4gdi4ZsGOGfTmo4w6gMh947BVz-BaWJ092rh_Ns/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUdhpKuP1xVRXHjKBlaK-y_8ew_7w6sccgl5yIpA5SFuQmbv51mgdS-S5Wk1yAGwOFucpP5LQF1qfCXcZ9mH6LK5JEq8juuuFFjx9P4gdi4ZsGOGfTmo4w6gMh947BVz-BaWJ092rh_Ns/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
The profit maximization occurs when marginal cost equal marginal revenue at a</div>
<div style="color: blue;">
price of P (RM20) and quantity at Q (9 units).</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
The firm earns supernormal profit when average revenue (AR) is greater than</div>
<div style="color: blue;">
average cost (AC).</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
Based on above diagram, average revenue is RM20 and average cost is RM15.</div>
<div style="color: blue;">
So, the firm will get the supernormal profit because total revenue (RM180) is</div>
<div style="color: blue;">
greater than total cost (RM135).</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
The shaded area (EABP) is shown the profit (supernormal profit) area.</div>
<div style="color: blue;">
Known as economic profit; (evidence) calculation</div>
<div style="color: blue;">
<br /></div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWIuSNSEptD0akGDOKaYP66uiIDL2MnIC5OS4qW0GrGoYpN362gYcbJVH4QEsts8X0wLoxa3kJJD9E9J_fBOl0mGohCsQQLpHEug7DeRzY3P0lomb_95xvS1Md9x0rPfdCM2MhAUPurSw/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="178" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWIuSNSEptD0akGDOKaYP66uiIDL2MnIC5OS4qW0GrGoYpN362gYcbJVH4QEsts8X0wLoxa3kJJD9E9J_fBOl0mGohCsQQLpHEug7DeRzY3P0lomb_95xvS1Md9x0rPfdCM2MhAUPurSw/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="background-color: lime; color: blue;">
<b>B. Subnormal Profit </b></div>
<div style="color: blue;">
<br /></div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil3dbLUYhb4I3XiXnoyz7LHfCZtj8tRTeWr9dix-RSzW3N-JJdotMmlnH86joygWnViCnp_02P_usj8vBvkortGfnfVp0A66Kd8hWlJmkK_tKiuFjrac0FjydFcehQE4it-v8y42XCOMw/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="245" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil3dbLUYhb4I3XiXnoyz7LHfCZtj8tRTeWr9dix-RSzW3N-JJdotMmlnH86joygWnViCnp_02P_usj8vBvkortGfnfVp0A66Kd8hWlJmkK_tKiuFjrac0FjydFcehQE4it-v8y42XCOMw/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
The profit maximization occurs when marginal cost equal marginal revenue at a</div>
<div style="color: blue;">
price of P (RM20) and quantity at Q (9 units).</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
The firm earns normal profit when average revenue (AR) is equal with average</div>
<div style="color: blue;">
cost (AC). Price is equal at minimum AC, firm at breakeven profit.</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
Based on above diagram, average revenue is RM20 and average cost is also</div>
<div style="color: blue;">
RM20.</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
So, the firm will get the normal profit because total revenue (RM180) is equal</div>
<div style="color: blue;">
with total cost (RM180).</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
Known as economic profit; (evidence) calculation</div>
<div style="color: blue;">
<br /></div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJyELIoGLKl_lw47IeFTCi6yHFqPmgHZvqMhUdUmA_mkFUgDN_N39o26uutqP3c-hhyphenhyphenfYLgX38dxN4CKUVMSrHZhQWlEVqeup6Nz7U7pE_Ndl374lhjCiBUFTOqsF081V7u0pc-tNqp-4/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJyELIoGLKl_lw47IeFTCi6yHFqPmgHZvqMhUdUmA_mkFUgDN_N39o26uutqP3c-hhyphenhyphenfYLgX38dxN4CKUVMSrHZhQWlEVqeup6Nz7U7pE_Ndl374lhjCiBUFTOqsF081V7u0pc-tNqp-4/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="background-color: lime; color: blue;">
<b>B. normal Profit </b></div>
<div style="color: blue;">
<b><br /></b>
<b><br /></b>
</div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY-oQZaQOnRqS4raHRRR7XpH2d7F_ilw1LXz0oOYecJSOBTDQwndctPuZhyphenhyphenP-YiN1FayzEYL7pmJCOWFM3iwPb_ia_CQjK36vcuANrTg630QZSyHReaaGnIgkh4s3vxmiyaYY_CAzYRrs/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY-oQZaQOnRqS4raHRRR7XpH2d7F_ilw1LXz0oOYecJSOBTDQwndctPuZhyphenhyphenP-YiN1FayzEYL7pmJCOWFM3iwPb_ia_CQjK36vcuANrTg630QZSyHReaaGnIgkh4s3vxmiyaYY_CAzYRrs/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<b><br /></b>
<b>The profit maximization occurs when marginal cost equal marginal revenue at a<br />price of P (RM20) and quantity at Q (9 units).</b></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<b>The firm earns subnormal profit when average revenue (AR) is less than average<br />cost (AC).</b></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<b>Based on above diagram, average revenue is RM20 and average cost is RM25.</b></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<b>So, the firm will get the subnormal profit because total revenue (RM180) is less<br />than total cost (RM225).</b></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<b>The shaded area (EPAB) is shown the subnormal profit (losses) area.</b></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<b>Known as economic profit; (evidence) calculation</b></div>
<div style="color: blue;">
<b><br /></b>
</div>
<div class="separator" style="clear: both; color: blue; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGKNpMfu2-SPdI7gkgQcaiQbe0CWeYKj8Adbw_stROyoWoMjapIByNrpZCpn5ev0S7eDhdmR6yublqtJSY6TVC1e5RjchHRpLRbhnsp09ZZ6MZvpXtTMCuJ54b-QrL4RWSD248XfrQLdM/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGKNpMfu2-SPdI7gkgQcaiQbe0CWeYKj8Adbw_stROyoWoMjapIByNrpZCpn5ev0S7eDhdmR6yublqtJSY6TVC1e5RjchHRpLRbhnsp09ZZ6MZvpXtTMCuJ54b-QrL4RWSD248XfrQLdM/s320/1.jpg" width="320" /></a></div>
<div style="color: blue;">
<b><br /></b>
<b><br /></b>
</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<br /></div>
amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.comtag:blogger.com,1999:blog-5285936079484316493.post-17963704006286247062012-05-31T07:07:00.000-07:002012-05-31T07:07:29.781-07:00Characteristics Perfect Competition Market<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">4.1<span style="mso-tab-count: 1;"> </span>Perfect Competition Market</span></span></b><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Perfect competition market is <i style="mso-bidi-font-style: normal;">market in which there are a large number of buyers and sellers, buying and selling the homogenous products at certain price levels.</i> Examples of products in perfect competition market are agricultural goods such as vegetable, fruits and others. <o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Characteristics </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></b></div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Large number of buyers</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There are many buyers in the market but they cannot control prices. Price is fixed in the market through the forces of demand and supply. No matter how much has been purchased, price is always constants. Buyers are said to be price takers. </span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Many sellers in the market</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There are many sellers in the market. Like the buyers they too cannot control price. They are also price takers. Usually the sellers are small firms. The action of one firm will affect to others firms. Example; if the seller offers a lower price, then he will incur a loss, and if he sells at a higher price, there will be no demand. In other words, he is powerless in determining price but he can set the quantity he wants to sell.</span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The product are homogenous</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The goods are homogenous and not differentiated. They are identical. The consumer cannot differentiate whether the goods come from producer A or B or C. Advertising is totally absent in this market.</span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">d.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Free entry to and exit from the market</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There must be free entry to and exit from the market. If the industry is making profits, then new firms will enter the market. Otherwise, some firms will leave the market. No restriction is imposed.</span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">e.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Perfect knowledge</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Both the consumers and the producers have perfect knowledge about the market situation. They know the current prices in all markets.</span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">f.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Mobility of factors of production</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There must be mobility of factors of production. This means that factors of production are mobile. There are no barriers to mobility. As for land, it must have alternative uses. </span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">g.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">No transportation cost</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There must be no transportation cost. It is assumed that all firms are situated close to one another and are very close to the market. </span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">h.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Independence in decision making</span></span></b></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There will be no external forces that will influence the decision of buyers and seller. They make their own decisions. <o:p></o:p></span></span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.comtag:blogger.com,1999:blog-5285936079484316493.post-72685002843703419702012-05-31T06:46:00.000-07:002012-05-31T06:46:51.402-07:00Market Structure: Introduction<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">4.0<span style="mso-tab-count: 1;"> </span>INTRODUCTION</span></span></b><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">This topic discusses all the theories about different markets. Different markets will make different decisions on the determination of quantities and prices. In this topic, we will discuss the characteristics of each market. We discuss how the determination of the profits in the short and long term. </span></span><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Market</span></b><span style="font-size: 12pt; line-height: 115%;"> is <i style="mso-bidi-font-style: normal;">an arrangement that facilitates the buying and selling of a product, service, factor of production or future commitment. </i>Or in other words, a market is a place where the buyers and sellers meet one another to transact business. </span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Market structure</span></b><span style="font-size: 12pt; line-height: 115%;"> refers to <i style="mso-bidi-font-style: normal;">the number and distribution size of buyers and sellers in the markets of particular goods and services.</i> Market structure divided to perfect competition, monopolistic, monopoly and oligopoly. </span></span><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Profit maximization in perfect competition market</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></b></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Market equilibrium is achieved when the marginal cost equal to marginal revenue. Price is determined based on the average revenue. Prices are fixed in perfect competition, so marginal revenue is still the same results at a price.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">MR = MC<o:p></o:p></span></span></div><br />
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">P = AR = MR</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Although, in the imperfect competition such as monopolistic, monopoly and oligopoly the market equilibrium achieved when marginal revenue equal with marginal cost. Price is different based on quantity supplied. </span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">MR = MC<o:p></o:p></span></span></div><br />
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">P = AR</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">A firm in the short-run will possibly enjoy three types of profit. The possibilities are:</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Supernormal profit</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The profit earned when total revenue is greater than total cost. It also realized when the price is greater than average total cost. </span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Subnormal profit</span></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Economic losses are the losses incurred because the price is lower than the average total cost or when total revenue is less than total cost. </span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Normal profit</span></span></b></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Normal profit or breakeven is the profit necessary for a firm to stay in business. Normal profit is when total revenue is equal to total cost and where no profit or loss is incurred. <o:p></o:p></span></span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.comtag:blogger.com,1999:blog-5285936079484316493.post-57377775419501100692012-05-30T19:28:00.002-07:002012-05-30T19:28:50.557-07:00PERODUA kaji keluar model sedanBerita Harian 31 mei 2012<br />
<span class="bywho">Oleh Che Wan Badrul Alias<br />
2012/05/31</span><br />
<br />
<br />
PERUSAHAAN Otomobil Kedua Sdn Bhd (PERODUA) sedang mengkaji kemungkinan untuk mengeluarkan model sedan pertamanya tidak lama lagi.<br />
<br />
Model berkenaan dijangka menerapkan beberapa elemen daripada model prototaip, Bezza yang sebelum ini diperkenalkan kepada umum ketika Pameran Motor Antarabangsa Kuala Lumpur (KLIMS) 2010.<br />
<div class="adisland"><!-- BHWeb_Island_Ad_Top_400x200 --> </div>Pengarah Urusannya Datuk Aminar Rashid Salleh, berkata kajian itu adalah sebahagian daripada usaha PERODUA untuk memenuhi permintaan pengguna yang mahukan pengeluar kereta nasional kedua itu menambah portfolio model kenderaannya kepada sekitar empat atau lima berbanding hanya tiga pilihan ketika ini.<br />
<div class="adisland"><!-- Zone Tag : Berita Harian Inside Pages - Island Ad --> </div>Katanya, syarikat amat berminat untuk membangunkan model baru sedan pada masa depan. <br />
<br />
Namun, katanya, ia perlu mendapat kelulusan kerajaan, pemegang saham, Lembaga Pengarah dan lebih-lebih lagi Daihatsu yang terkenal dengan pengkhususannya dalam segmen kereta kompak.<br />
<br />
“Kami sedang mengkaji semua ini kerana bukan mudah untuk membangunkan model baru itu dan kami sentiasa mengadakan perbincangan dengan pihak Daihatsu.<br />
<br />
“Bezza adalah model konsep yang kami banggakan kerana ia membuktikan keupayaan dan kepakaran yang syarikat miliki hasil daripada kerjasama kukuh dengan rakan teknologi PERODUA.<br />
“Namun kami sentiasa mencari jalan untuk memaksimumkan keupayaan yang kami miliki ini dalam model keluaran akan datang. Kalau kami tak boleh buat Bezza secara keseluruhan, akan ada elemen daripada model ini yang akan kami gunakan untuk keluaran model baru nanti,” katanya pada sidang media selepas memeterai memorandum pembelian sebidang tanah milik UMW Corporation Sdn Bhd di Rawang, semalam.<br />
<br />
Hadir sama, Presiden dan Ketua Eksekutif Kumpulan UMW Corporation, Datuk Syed Hisyam Syed Wazir.<br />
<br />
Menerusi perjanjian itu, PERODUA membeli 25.9 hektar kawasan berharga RM16.7 juta daripada UMW Corporation berhampiran lokasi ibu pejabatnya di Sungai Choh, Rawang untuk dibangunkan dengan kemudahan baru serta menambah prasarana bagi kemudahan sedia adanya.<br />
<br />
Kemudahan baru yang dirancangnya meliputi masjid, pusat penjagaan kanak-kanak, gimnasium mini, lapangan letak kereta tambahan dan prasarana utiliti yang semuanya akan dibangunkan secara berperingkat.<br />
<br />
Ketika ditanya sama ada UMW membenarkan PERODUA membangunkan kereta sedan, Syed Hisyam berkata, pihaknya sentiasa menyokong semua usaha yang cuba dilaksanakan untuk mengembangkan perniagaannya.<br />
<br />
Katanya, ia termasuk cadangannya membangunkan model baru dan peruntukkan pelaburan baru kerana pihaknya amat gembira dengan prestasi yang dicapai PERODUA ketika ini.<br />
<br />
“Sebagai pemegang saham tunggal terbesar PERODUA iaitu dengan pegangan 38 peratus, kami sentiasa menyokong perancangan pengembangan mereka lebih-lebih lagi di bawah kepimpinan Aminar Rashid yang berjaya memacu PERODUA ke tahap yang lebih tinggi,” katanya.amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-26678932286626264052012-05-28T05:27:00.001-07:002013-12-24T19:49:46.341-08:00economists' forum<a id="nabblelink" href="http://soal-jawab-ekonomi.1002065.n3.nabble.com/">Soal jawab ekonomi</a>
<script src="http://soal-jawab-ekonomi.1002065.n3.nabble.com/embed/f1"></script>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-87515407571227644182012-03-28T06:56:00.000-07:002012-03-28T06:56:53.732-07:00Revenue<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Concepts of Revenue<o:p></o:p></span></span></span></b><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Revenue means the sale receipt of the quantity or output produced in a firm.<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">a.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Total revenue (TR)<o:p></o:p></span></b></span></span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Total revenue (TR) is the value of a firm’s sales. In other words, total revenue refers to the total amount of money that a firm can obtain from the sales of its product. The formula is shown as below:<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 2in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">TR = P x Q<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 2in; mso-add-space: auto;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">For example, Firm JLQ sells 5000 pair of shoes at the rate of RM50.00. Firm JLQ’s total revenue is<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><span style="mso-tab-count: 2;"> </span>TR = P x Q<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 1;"> </span>= 50 x 5000<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><span style="mso-tab-count: 2;"> </span>= RM250 000.00<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span></o:p></span><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">b.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Average revenue (AR)<o:p></o:p></span></b></span></span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Average revenue (AR) is defined as the total revenue per unit output sold. The formula is as shown below:<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><span style="font-size: 12pt; line-height: 115%;"><span style="mso-tab-count: 1;"><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin; mso-text-raise: -10.5pt; position: relative; top: 10.5pt;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"> <v:stroke joinstyle="miter"> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0"> <v:f eqn="sum @0 1 0"> <v:f eqn="sum 0 0 @1"> <v:f eqn="prod @2 1 2"> <v:f eqn="prod @3 21600 pixelWidth"> <v:f eqn="prod @3 21600 pixelHeight"> <v:f eqn="sum @0 0 1"> <v:f eqn="prod @6 1 2"> <v:f eqn="prod @7 21600 pixelWidth"> <v:f eqn="sum @8 21600 0"> <v:f eqn="prod @7 21600 pixelHeight"> <v:f eqn="sum @10 21600 0"> </v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:formulas> <v:path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"> </v:path></v:stroke></span></span></v:shapetype></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt; tab-stops: 78.8pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">AR = P</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; tab-stops: 78.8pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: purple; font-family: Georgia;">AR = TR/Q</span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; tab-stops: 78.8pt;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">c.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Marginal revenue (MR)<o:p></o:p></span></b></span></span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 78.8pt;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 78.8pt;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Marginal revenue (MR) refers to the change in total revenue resulting from a one unit increase in quantity sold. Marginal revenue is equal to the change in total revenue divided by the change in output sold. The formula is as shown below:<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<span style="font-size: 12pt; line-height: 115%;"></span><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;"><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 78.8pt; text-align: center;"><span style="color: purple; font-family: Georgia, "Times New Roman", serif;">MR = change in TR / Change in Q</span></div></span><span style="font-size: 12pt; line-height: 115%;"><o:p></o:p></span><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: 1.0in; text-indent: -0.5in;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">d.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Profit<o:p></o:p></span></b></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 1.0in;"><br />
</div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 1.0in;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Profit is the difference between the purchase price and the costs of bringing to market.<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; tab-stops: 1.0in;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;"><span style="mso-tab-count: 1;"> </span>Profit = Total Revenue (TR) – Total Cost (TC)<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com1tag:blogger.com,1999:blog-5285936079484316493.post-27154710573172706242012-03-28T06:40:00.000-07:002012-03-28T06:40:46.806-07:00Relationship between Marginal Cost (MC) and Average Cost (AC).<div class="separator" style="clear: both; text-align: center;"><img border="0" height="276" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4H8MRt9JTAzp3UDuaZvCSM1LgLmdY2Eg3WPMbzzUimnyQc5tKsvgeLIjCrkEXo5Kvew8m94qORnzJ8q894KAJYsg2fQXZK7jvoCLp2Pu5RxysayMGJ1zRK0KWAL6HI_KAChHsPKFo2VI/s640/relationship+mc+n+ac.jpg" width="640" /></div><br />
<br />
<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><strong>1. Relationship between Marginal Cost (MC) and Average Cost (AC). <span style="color: red;">[based on the above picture]</span></strong></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="font-family: Georgia, "Times New Roman", serif;"><strong><span style="color: purple;">2. <span style="font-size: 12pt; line-height: 115%;">Relationship between Marginal Cost (MC) and Average Variable Cost (AVC). <span style="color: red;">[just change the "AC" to "AVC"]</span></span></span></strong></span></span></span></div><span style="font-family: Calibri;"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-family: "Courier New", Courier, monospace;"><strong><span style="color: blue;">Example Question :</span> Explain the relationship between marginal cost and average cost. [6 marks]</strong></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-family: "Courier New", Courier, monospace;"><strong><span style="color: blue;">suggestion answer:</span> </strong></span></div><ul><li><span style="font-family: "Courier New", Courier, monospace;"><strong> Diagram 2 marks</strong></span></li>
<li><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-family: "Courier New", Courier, monospace;"><strong>explanation = 4 marks</strong></span></div></li>
</ul><div class="MsoNormal" style="margin: 0in 0in 0pt;"></div></span><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-36687623916523882032012-03-24T06:14:00.002-07:002012-03-28T06:21:19.371-07:00Cost of Production<span style="font-family: Georgia, "Times New Roman", serif;"><strong><span style="color: purple;"> <span style="font-size: 12pt; line-height: 115%;">Cost of production refers to the expenses incurred by the producer in producing a particular quantity of output. There are 7 types of short-run costs:</span></span></strong></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6bUrzUyc72oUC2Tlx7ucmRb-kFk-CO2W0sCUNrCowF2UsrwYWojLzOGnIPFFKVIhFoPOA-92Q33_7y20StvLmIVqAI9gnSG2NhCgSEKZH2n6k6QjMlYoMmVWx_mcNAs412Ikwr6V6R38/s640/Slide1.JPG" width="640" /></div><br />
<div class="separator" style="clear: both; text-align: center;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7MD-NHduMX04hzLmLDKuMwIhTRldafmm7bRhGqq72w2n_YlrpkccZiUey6oj_7dF5CYxntJHLGWU8yjFFqF2rrV1uHdqlfoY8dyW0aFrW0-fxPiRlcfWVeiDPrr0_CMa9PQ-_eXpj1sE/s640/Slide2.JPG" width="640" /></div><br />
<div class="separator" style="clear: both; text-align: center;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdp06ldUDqJkTlTF8w_M2VjV0FvR96H3lt23DX5q3Mb54RBZEbwTwJR-ZdlYEBtUwRSIhMCu8EWp8y82gMy4WcOdPJFAb8uqF4jSiQPZAAl7XaIbQ6EpOftOmtLnEjksqcBqr75Lmbs30/s640/Slide3.JPG" width="640" /></div><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><strong> </strong></span>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-64540509181021237362012-03-23T07:49:00.000-07:002012-03-23T07:49:02.674-07:00Law of Diminishing Marginal Returns<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRj-P8WzOEWX93Krg9YEgSskowuYw6KGuo6QRjCg6ZvOc-zePNDFrQzvJlUkYsgI7oTQSlrx8Cz-UHMMW8cW4qwSah-hhG3oN_gcV-NTZAMB4slVMfq311Kj4YLGE5NwhIZTLZVXIWInk/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRj-P8WzOEWX93Krg9YEgSskowuYw6KGuo6QRjCg6ZvOc-zePNDFrQzvJlUkYsgI7oTQSlrx8Cz-UHMMW8cW4qwSah-hhG3oN_gcV-NTZAMB4slVMfq311Kj4YLGE5NwhIZTLZVXIWInk/s640/Slide1.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-LKGbccEKtOM0n5-PNJt2CKicTEr9fuQjr3JjP-UpIc9kan40N-N7zy_unbsgv2nYttnMhsy9hsnzPJQVjgM7lpAUdUC7o015kX5SxPD1y-ovjkUwONASSnTAnujx6PqBS3k_R4ZeBo0/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-LKGbccEKtOM0n5-PNJt2CKicTEr9fuQjr3JjP-UpIc9kan40N-N7zy_unbsgv2nYttnMhsy9hsnzPJQVjgM7lpAUdUC7o015kX5SxPD1y-ovjkUwONASSnTAnujx6PqBS3k_R4ZeBo0/s640/Slide2.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoGZvo_OWnKtzf9tWgO4eabeoScLJy3Owuhuj0dlC_-_vyJ6M3DzJIuX9VYjmWfIpxFxs_T_nXt44XHTo1sxURaJq7vedjeo43XWPQgfk2IkGlLrQWvxbADA4YLprQv_z9KrgE5Gl8G4Y/s1600/Slide3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoGZvo_OWnKtzf9tWgO4eabeoScLJy3Owuhuj0dlC_-_vyJ6M3DzJIuX9VYjmWfIpxFxs_T_nXt44XHTo1sxURaJq7vedjeo43XWPQgfk2IkGlLrQWvxbADA4YLprQv_z9KrgE5Gl8G4Y/s640/Slide3.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixpyH5pBm5nhrRpCfsNwBGxLWmd-Tse1wKjToAPWt_nmawjA2nc68pzag73LKc1Ml_ZvQI8jm9RW6LbcKyb6qE35axoGI3AsuusYG0UG4Ldm897FcZUSzulsI6DtGDqbI2vwMBwY5-DJI/s1600/Slide4.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixpyH5pBm5nhrRpCfsNwBGxLWmd-Tse1wKjToAPWt_nmawjA2nc68pzag73LKc1Ml_ZvQI8jm9RW6LbcKyb6qE35axoGI3AsuusYG0UG4Ldm897FcZUSzulsI6DtGDqbI2vwMBwY5-DJI/s640/Slide4.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiifpWpdaowFEQ4ZjHz45hyqC2rgdaImhuUWLC9ZjyBARzjZ9opPhtaJx5VZ-yqztmm17U6l_HKp0K2Hmbd_lFv-xPwV48xKw-2tNGd3sFJGw2S9ao_0v7zFG0tOF7Dvk2lht8ZhT5WUGQ/s1600/Slide5.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiifpWpdaowFEQ4ZjHz45hyqC2rgdaImhuUWLC9ZjyBARzjZ9opPhtaJx5VZ-yqztmm17U6l_HKp0K2Hmbd_lFv-xPwV48xKw-2tNGd3sFJGw2S9ao_0v7zFG0tOF7Dvk2lht8ZhT5WUGQ/s640/Slide5.JPG" width="640" /></a></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-60632495268377515812012-03-23T07:16:00.003-07:002012-03-23T07:18:39.391-07:00Types of Production<strong><span style="color: purple; font-family: "Courier New", Courier, monospace;">Types of Production</span></strong><br />
<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAlC8iqBe-QPfZri6XZtIn6C1ROdSsWtuu6wU7lXE8HY0yMAQWLlQu6rfJSw3i3RCN2Th_s7KP8hueqD5zaVfxoBY0cbLT-zAK1LWB-LWGp51h_nDZ39HH4c3z4aErsYUYmb3Lcho3X7c/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAlC8iqBe-QPfZri6XZtIn6C1ROdSsWtuu6wU7lXE8HY0yMAQWLlQu6rfJSw3i3RCN2Th_s7KP8hueqD5zaVfxoBY0cbLT-zAK1LWB-LWGp51h_nDZ39HH4c3z4aErsYUYmb3Lcho3X7c/s640/Slide1.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQz17Y7cx3a_BqSDqw7ctnuyICenEs3qVPlimmLNcKJYQClvAKglFLh3NiTqqUtzHjCPaq6TXRsQ8HXCbDa4dVXmxEqPHBGLc9ECDH5Z5udEsAmfFB1BHxaOwctIQc5XdTe2KY6ECAIy0/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQz17Y7cx3a_BqSDqw7ctnuyICenEs3qVPlimmLNcKJYQClvAKglFLh3NiTqqUtzHjCPaq6TXRsQ8HXCbDa4dVXmxEqPHBGLc9ECDH5Z5udEsAmfFB1BHxaOwctIQc5XdTe2KY6ECAIy0/s640/Slide2.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglzyyDeWY8t9E2lwiYYz8u25tTOTM6XYW4RIv59_vvcqaDC-QbkFcqs0tzIyV1ydEp109-jmoxpSbIuimy9cxFI4JSTi8qPF-xwlIIRHyEIN3Y4zVFUD4_NDw2UwNCZS3L234hrsswGGA/s1600/Slide3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglzyyDeWY8t9E2lwiYYz8u25tTOTM6XYW4RIv59_vvcqaDC-QbkFcqs0tzIyV1ydEp109-jmoxpSbIuimy9cxFI4JSTi8qPF-xwlIIRHyEIN3Y4zVFUD4_NDw2UwNCZS3L234hrsswGGA/s640/Slide3.JPG" width="640" /></a></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-805715117121401372012-03-23T06:36:00.000-07:002012-03-23T06:36:45.706-07:00Short-run and Long-run Production<marquee><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Short-run and Long-run Production<o:p></o:p></span></span></b><marquee></marquee></marquee><br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhK0lncm-Gztu5RJfNZajDbfdw_FSX_wNHB1n0g00_QSf7FLaGZrzwHYsUwZmaluV1bktGqgc2OJYuCXD_HjqBX27f384xGNmijaTllAdNLcrME5NpOzYbQ4J_TeeODO0U0SSts53RbiSA/s1600/1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhK0lncm-Gztu5RJfNZajDbfdw_FSX_wNHB1n0g00_QSf7FLaGZrzwHYsUwZmaluV1bktGqgc2OJYuCXD_HjqBX27f384xGNmijaTllAdNLcrME5NpOzYbQ4J_TeeODO0U0SSts53RbiSA/s640/1.jpg" width="640" /></a></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-86915593739491980752012-03-23T05:56:00.007-07:002012-03-23T06:59:35.574-07:00factors of production<span style="color: purple; font-family: Georgia, "Times New Roman", serif;">Factors of Production<br />
</span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><ol><li><span style="color: blue; font-family: Georgia, "Times New Roman", serif;">Land</span></li>
<li><span style="color: blue; font-family: Georgia, "Times New Roman", serif;">Labour</span></li>
<li><span style="color: blue; font-family: Georgia, "Times New Roman", serif;">Capital</span></li>
<li><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><span style="color: blue;">Entrepreneurship</span> </span></li>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEitfopog9Z9YKWbMM3jwMkgAOp0GuFw3FzhPXY3LMwMwVtLeqbHrXHSqHqbvaxSgNmXzDhVaIPRsfHczZsWh0HROG90wf3b2xI9XLIR2Cwu6arv6w8Ox7p9Heprtw6V0THeeNeb6O5TduY/s1600/2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEitfopog9Z9YKWbMM3jwMkgAOp0GuFw3FzhPXY3LMwMwVtLeqbHrXHSqHqbvaxSgNmXzDhVaIPRsfHczZsWh0HROG90wf3b2xI9XLIR2Cwu6arv6w8Ox7p9Heprtw6V0THeeNeb6O5TduY/s640/2.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: left;"></div><div class="separator" style="clear: both; text-align: left;"></div><div align="left"></div></ol></span>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-53015122286626166922012-03-23T05:40:00.001-07:002012-03-23T05:42:56.951-07:00Definition of Production<span style="color: purple;"><strong><span style="font-family: Georgia, "Times New Roman", serif;"> <span style="font-size: 12pt; line-height: 115%;"><span style="color: purple;">INTRODUCTION<o:p></o:p></span></span></span></strong></span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><strong> </strong></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: purple;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: blue;">This topic discusses all the theories of production. This involves the use of production factors in producing the most effective level. In addition, manufacturers also need to use the correct scale to ensure that the resulting output to fulfill the law of diminishing marginal returns. In this chapter also, we will explain the relationship between cost and output. We will define the cost involved in production process, identify various types of costs and need to analyze short run costs and long run costs. At the end of this chapter, we will explain differentiate between small firm and large firm.</span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div><span style="color: purple;"><strong><span style="font-family: Georgia, "Times New Roman", serif;"> <span style="font-size: 12pt; line-height: 115%;"></span></span></strong></span><br />
<span style="font-family: Georgia, "Times New Roman", serif;"><br />
</span><br />
<span style="font-size: 12pt; line-height: 115%;"><strong><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: purple;">Definition of production<o:p></o:p></span></span></strong></span><br />
<span style="color: purple; font-family: Georgia, "Times New Roman", serif;"><strong> </strong></span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: blue;">Production means the process of using the factors of production to produce goods or services. In other words, production means the transformation of inputs into outputs.<o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in;"></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: blue;">Input is refers to those things that a firm buy for use in production process such as land, labour, capital and entrepreneur. Output is refers to what we get at the end of the production process or refers to finished goods. <o:p></o:p></span></span></span></div><span style="color: purple; font-family: Georgia, "Times New Roman", serif;"> </span>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-30486166167611991592012-03-08T04:24:00.000-08:002012-03-08T04:24:16.008-08:00example final exam : Demand and Supply<b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Cambria","serif"; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Example of final exam questions<o:p></o:p></span></u></b> <b style="mso-bidi-font-weight: normal;"><span style="font-family: "Cambria","serif"; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"></span></b><br />
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Cambria","serif"; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Section A; Multiple choice questions<o:p></o:p></span></b><br />
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt; mso-add-space: auto; tab-stops: 0in;"><br />
</div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">A market is in equilibrium<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l6 level2 lfo9; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">provided there is a surplus of the product<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l6 level2 lfo9; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">at all process above the intersection point of the supply and demand curves<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l6 level2 lfo9; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">when the amount the producers want to sell is equal to the amount the consumers want to buy.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l6 level2 lfo9; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">whenever the demand curve is downward sloping and the supply curve is upward sloping.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in;"><i style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Use the following table to answer question 2 and 3<o:p></o:p></span></span></i></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 74.7pt; mso-border-alt: solid black .5pt; mso-border-insideh: .5pt solid black; mso-border-insidev: .5pt solid black; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid black; mso-border-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Quantity demanded<o:p></o:p></span></span></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Price (RM)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Quantity supplied<o:p></o:p></span></span></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">1,000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">3<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">700<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">900<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">6<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">750<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">800<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">9<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">800<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">700<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">12<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">850<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 113.15pt;" valign="top" width="151"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">600<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 78.2pt;" valign="top" width="104"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 127.6pt;" valign="top" width="170"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">900<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><i style="mso-bidi-font-style: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></i></div><br />
<div class="MsoListParagraph" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Based on the data, the market will be in equilibrium if the price is<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>A.<span style="mso-tab-count: 1;"> </span>RM6.00<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>B.<span style="mso-tab-count: 1;"> </span>RM12.00<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-family: Calibri;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="mso-tab-count: 1;"> </span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;">C.<span style="mso-tab-count: 1;"> </span>RM9.00<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>D.<span style="mso-tab-count: 1;"> </span>RM3.00<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">3.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">If the price RM12.00, there will be<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-family: Calibri;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="mso-tab-count: 1;"> </span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;">A.<span style="mso-tab-count: 1;"> </span>an excess supply by 150 units.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>B.<span style="mso-tab-count: 1;"> </span>a shortage of supply by 150 units.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>C.<span style="mso-tab-count: 1;"> </span>an excess of demand by 850 units.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>D.<span style="mso-tab-count: 1;"> </span>a shortage of demand by 700 units.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; tab-stops: .5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; tab-stops: .5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><i style="mso-bidi-font-style: normal;">The following figures are extracted from a supply schedule: <o:p></o:p></i></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.25in; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 1.25in; mso-border-alt: solid black .5pt; mso-border-insideh: .5pt solid black; mso-border-insidev: .5pt solid black; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid black; mso-border-alt: solid black .5pt; padding: 0in 5.4pt; width: 128.05pt;" valign="top" width="171"> <div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: right;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Price per unit ( RM )<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 142pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Quantity supplied<span style="mso-spacerun: yes;"> </span>(units)<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 128.05pt;" valign="top" width="171"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">4.00<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 142pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1,000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 128.05pt;" valign="top" width="171"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">5.00<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 142pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1,600<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 128.05pt;" valign="top" width="171"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">6.00<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 142pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2,000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 128.05pt;" valign="top" width="171"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">7.00<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 142pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2,400<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.25in; tab-stops: .5in; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraph" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; tab-stops: .5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">4.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">When the price falls from RM6.00 to RM5.00 elasticity of supply can be expressed as:<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; tab-stops: .5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">A.<span style="mso-spacerun: yes;"> </span><span style="mso-tab-count: 1;"> </span>2.0<span style="mso-tab-count: 3;"> </span><o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l2 level1 lfo2; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1.75<span style="mso-tab-count: 3;"> </span><o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 132.35pt 0pt 0in; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>C.<span style="mso-tab-count: 1;"> </span>1.5<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><span style="mso-bidi-font-weight: bold;">D.<span style="mso-tab-count: 1;"> </span>1.2<o:p></o:p></span></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraph" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">5.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">The following table refers to the demand and supply of sugar in a given market in a given period of time.<o:p></o:p></span></span></div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 0.55in; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480; width: 585px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Price of sugar per kg (RM)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Demand for sugar(kg)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Supply for sugar (kg)<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">3<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 2.15in;" valign="top" width="206"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 142.1pt;" valign="top" width="189"> <div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">The government imposes a maximum price of RM 1 per kilogram. What is the effect of this? <o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l5 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -34.95pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">the supply curve shifts to the left.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l5 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -34.95pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">The demand curve shifts to the right.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l5 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -34.95pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">There will be shortage of 25 kg.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l5 level2 lfo1; tab-stops: list 1.0in; text-align: justify; text-indent: -34.95pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">There will be surplus of 15 kg.</span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify; text-indent: 0.5in;"><br />
</div><w:wrap type="tight"></w:wrap><br />
<br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">7.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Raies love peanut butter. Raies heard on the news that 50%of the peanut crop in the South has been wiped out, which will cause the price to double by the end of the year. As a result<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l10 level1 lfo5; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Raies is demand for peanut butter will increase by the end of the year.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l10 level1 lfo5; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">Raies is demand for peanut butter increases today.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l10 level1 lfo5; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Raies is demand for peanut butter falls as he looks for a substitute good.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l10 level1 lfo5; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Raies decided to give up peanut butter completely.<o:p></o:p></span></span></div><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">8.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">If a 10 % increase in the price of sugar results in a 5 % decline in the quantity of sugar sold, the cross elasticity of demand for sugar is<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l3 level1 lfo6; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l3 level1 lfo6; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">-2.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l3 level1 lfo6; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">½.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l3 level1 lfo6; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">-1/2.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">9.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">If goods A and B are close substitutes <o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l7 level1 lfo7; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">then the demand for good A will decrease when the price of good B rises.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l7 level1 lfo7; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">the demand<span style="mso-spacerun: yes;"> </span>of good A will increase when the price of good B rises.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l7 level1 lfo7; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">an increase in the price of good B will decrease the demand for good A.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l7 level1 lfo7; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a change in the price of good A will not affect the demand for good B, but will affect the supply.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">10.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">If a decrease in income increases the demand for good, then the good is<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l11 level1 lfo8; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a substitute good.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l11 level1 lfo8; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a complement good.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l11 level1 lfo8; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a normal good.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; mso-list: l11 level1 lfo8; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">an inferior good.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">121</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Complementary goods are goods<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><span style="mso-bidi-font-weight: bold;">A.<span style="mso-tab-count: 1;"> </span>that are consumed jointly.<o:p></o:p></span></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>B.<span style="mso-tab-count: 1;"> </span>that are consumed one in a place of the other.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">C.<span style="mso-tab-count: 1;"> </span>for which demand increase when the price of its complementary goods increase.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1in; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">D.<span style="mso-tab-count: 1;"> </span>for which demand decrease when the price of its complementary goods decrease.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l8 level1 lfo10; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">12.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">According to the law of supply, there is a direct relationship between quantity supplied and<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span>A.<span style="mso-tab-count: 1;"> </span>the number of sellers.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">B.<span style="mso-tab-count: 1;"> </span>costs of resources.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">C.<span style="mso-tab-count: 1;"> </span>technology.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma; mso-bidi-font-weight: bold;"><span style="font-family: Calibri;">D.<span style="mso-tab-count: 1;"> </span>the price of the<span style="mso-spacerun: yes;"> </span>good<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: 99.65pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Section B<o:p></o:p></span></span></b></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: 99.65pt;"><br />
</div><br />
<div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l4 level1 lfo12; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a.<span style="mso-tab-count: 1;"> </span>With the aid of a diagram, discuss how a market could achieve equilibrium.<span style="mso-tab-count: 3;"> </span><span style="mso-tab-count: 8;"> </span>(3 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 1in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">b.<span style="mso-tab-count: 1;"> </span>Explain by using appropriate diagrams, the effect on the market for Perodua’s car in each of the following cases:<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.5in; mso-list: l1 level2 lfo11; tab-stops: list 1.5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">i.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">an increase in the price of petrol<span style="mso-tab-count: 4;"> </span>(3 marks)<span style="mso-tab-count: 1;"> </span><o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.5in; mso-list: l1 level2 lfo11; tab-stops: list 1.5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">ii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">an increase in consumer’s income<span style="mso-tab-count: 4;"> </span>(3 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.5in; mso-list: l1 level2 lfo11; tab-stops: list 1.5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">iii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">an increase in the cost of tyre<span style="mso-tab-count: 4;"> </span>(3 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 1.5in; mso-list: l1 level2 lfo11; tab-stops: list 1.5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">iv.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">a decrease in using a local labour<span style="mso-tab-count: 4;"> </span>(3 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 3.5in; text-align: justify; text-indent: 0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></b></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 4.5in; text-align: justify; text-indent: 0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(TOTAL: 15 marks)<o:p></o:p></span></span></b></div><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br clear="all" style="mso-special-character: line-break; page-break-before: always;" /> </span> <br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: 99.65pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Section C<o:p></o:p></span></span></b></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; tab-stops: 99.65pt;"><br />
</div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Arial;">1.<span style="mso-tab-count: 1;"> </span></span><span style="font-size: 12pt; line-height: 115%;">The demand and supply schedules for watermelons are as follows:</span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p></o:p></span></span></div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 41.4pt; mso-border-alt: solid black .5pt; mso-border-insideh: .5pt solid black; mso-border-insidev: .5pt solid black; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480; width: 554px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid black; mso-border-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" valign="top" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Price<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(RM)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Consumer A<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" valign="top" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Consumer B<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" valign="top" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Supplier S<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" valign="top" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Supplier T<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: black black black rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" valign="top" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Supplier U<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(units)<o:p></o:p></span></span></b></div></td> </tr>
<tr style="height: 19.75pt; mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1.20<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">29<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">32<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 19.75pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">12<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1.40<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">24<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1.60<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">16<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">22<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1.80<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">11<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">19<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">19<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">17<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">22<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2.00<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">14<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">23<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">33<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 46.85pt;" width="62"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2.20<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 83.65pt;" width="112"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">9<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 76.85pt;" width="102"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">27<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) black black rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt; width: 65.5pt;" width="87"> <div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; tab-stops: list 1.0in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-list: l9 level1 lfo13; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">i.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Calculate the value of total market demand and total market supply. <span style="mso-tab-count: 4;"> </span><span style="mso-tab-count: 4;"> </span><span style="mso-tab-count: 3;"> </span>(6 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-list: l9 level1 lfo13; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">ii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Draw the market demand curve and market supply curve and label it DD1 and SS1.<span style="mso-tab-count: 1;"> </span> <span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 7;"> </span>(5 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: list 1.0in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-list: l9 level1 lfo13; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">iii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">What is the equilibrium price and quantity? <span style="mso-tab-count: 2;"> </span><span style="mso-tab-count: 2;"> </span>(4 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; tab-stops: list 1.0in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-list: l9 level1 lfo13; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">iv.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Assuming that supplier T has gone and a new consumer<span style="mso-spacerun: yes;"> </span>C enters the market of watermelons, and demand the amount of watermelons similar like consumer A. Draw the new market demand curve and market supply curve and label it DD2 and SS2. (show your working) <span style="mso-tab-count: 4;"> </span><span style="mso-tab-count: 1;"> </span>(9 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; tab-stops: list 1.0in; text-align: justify;"><br />
</div><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-list: l9 level1 lfo13; tab-stops: list 1.0in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">v.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Explain what has happened to the new market demand and supply curves? <span style="mso-tab-count: 3;"> </span><span style="mso-tab-count: 4;"> </span><span style="mso-tab-count: 3;"> </span>(6 marks)<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt; text-align: justify;"><br />
</div><br />
<div align="right" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: right;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">[Total : 30 marks]<o:p></o:p></span></span></b></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com3tag:blogger.com,1999:blog-5285936079484316493.post-2208308592871804692012-03-08T04:16:00.000-08:002012-03-08T04:16:08.423-08:00Tutorial Elasticity<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Exercise: Elasticity</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></b> <br />
<div class="MsoListParagraph" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The following is part of the demand schedule for commodity A.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 81.9pt; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 306px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Price (RM)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity demanded of goods A<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">100<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">7<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">150<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">300<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Define price elasticity of demand.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Calculate the price elasticity of demand for goods A if;<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l2 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">i.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price falls from RM8 to RM7<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l2 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">ii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price falls from RM7 to RM6<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l2 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">iii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price increases from RM6 to RM7<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l2 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">iv.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price increases from RM7 to RM8<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Draw appropriate diagrams and explain the following value of elasticity of demand.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l0 level1 lfo4; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">i.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Perfectly inelastic demand<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l0 level1 lfo4; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">ii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Perfectly elastic demand<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1.5in; mso-add-space: auto; mso-list: l0 level1 lfo4; mso-text-indent-alt: -.25in; text-indent: -1.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span><span style="font-family: Calibri;">iii.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Unitary elastic demand<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The following table shows the quantity demanded for 2 goods, X and Y at various levels of consumer’s income.<o:p></o:p></span></span></div><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 63.9pt; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 474px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Income (RM)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Demanded<o:p></o:p></span></span></div><div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Goods A<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Demanded<o:p></o:p></span></span></div><div align="center" class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Goods B<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">10 000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4500<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">1950<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">11 000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4750<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">1500<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">12 000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">5020<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">1400<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.5pt;" width="150"> <div align="center" class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">13 000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">5480<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt; mso-add-space: auto; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">900<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto;"><br />
</div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">What is the meaning of income elasticity of demand?<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Calculate the income elasticity of demand for goods A and B if consumer’s income increases from RM10000 to RM12000.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Interpret the value of elasticity in question (b).<o:p></o:p></span></span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-46735089132153927432012-03-04T20:19:00.005-08:002012-03-08T04:12:01.205-08:00Elasticity of Demand<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="color: red;"><u>Elasticity<o:p></o:p></u></span></span></span></b><br />
<br />
<span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"> --> Elasticity is a measure of the responsiveness of a variable (quantity demanded or supplied) to a change in one of its determinants (e.g. price or income).<o:p></o:p></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; tab-stops: 256.7pt; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">There are four types of elasticity:<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: 256.7pt; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price elasticity of demand</span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: 256.7pt; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">B.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Income elasticity of demand</span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: 256.7pt; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">C.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Cross elasticity of demand</span></span></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: 256.7pt; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">D.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price elasticity of supply </span></span><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div><br />
<span style="color: red;"><span style="font-size: large;"><u><b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">A.</span><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price elasticity of demand (ε<sub>p</sub>)<o:p></o:p></span></span></b></u></span></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;"><img border="0" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwZT7vFFHsuufTP6Fyax3VXJtO7GLLQEqYDJkG-XDpOvlxvuw_wWc37KxBLfAZVgnncfcTxgS1eCga6FsOc-4muTho6LCRGtdBihWfpHAbqIIx3VP1Z-E-8MvJ5n2_SrJXgMJEkKI8yzk/s320/Presentation1.jpg" width="320" /><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"></span></span></b></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="color: red;"><u>Definition<o:p></o:p></u></span></span></span></b></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; tab-stops: 256.7pt; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Price elasticity of demand measures the responsiveness of the quantity demanded due to a change in its price.</span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span> </span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-text-raise: -10.5pt; position: relative; top: 10.5pt;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"> <v:stroke joinstyle="miter"> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0"> <v:f eqn="sum @0 1 0"> <v:f eqn="sum 0 0 @1"> <v:f eqn="prod @2 1 2"> <v:f eqn="prod @3 21600 pixelWidth"> <v:f eqn="prod @3 21600 pixelHeight"> <v:f eqn="sum @0 0 1"> <v:f eqn="prod @6 1 2"> <v:f eqn="prod @7 21600 pixelWidth"> <v:f eqn="sum @8 21600 0"> <v:f eqn="prod @7 21600 pixelHeight"> <v:f eqn="sum @10 21600 0"> </v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:formulas> <v:path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"> <o:lock aspectratio="t" v:ext="edit"> </o:lock></v:path></v:stroke></v:shapetype><v:shape id="_x0000_i1025" style="height: 27pt; width: 42pt;" type="#_x0000_t75"> <v:imagedata chromakey="white" o:title="" src="file:///C:\Users\KPMBP\AppData\Local\Temp\msohtmlclip1\01\clip_image001.png"> </v:imagedata></v:shape></span><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;"><o:p></o:p></span></div><span style="font-size: 14pt; line-height: 115%; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;"><span style="mso-tab-count: 1;"><span style="font-family: Calibri;"> E</span></span></span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">xample; <o:p></o:p></span></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; tab-stops: 1.25in;"><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Question:</span></b><span style="font-size: 12pt; line-height: 115%;"> Price increase from RM2.00 to RM4.00 and quantity demanded falls from 60 units to 40 units, find the value of price elasticity of demand.<o:p></o:p></span></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.5in; tab-stops: 1.25in;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Answer: Q<sub>0</sub> = 60, Q<sub>1</sub> = 40, P<sub>0 </sub>= RM2, P<sub>1</sub> = RM4</span></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkNd64_61QLEFOmLRdcWBQ6_W_TjP140cgWuWZdoYElI3a_XoPbjTOC5zE24Phg3l0DumFxQ-qj-mCvB4-cjaAaM__eYEEYVCGXF6wCow7RUJS1303T6JD-dd4vqW-cglpRKHdTjijFZw/s1600/rr.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkNd64_61QLEFOmLRdcWBQ6_W_TjP140cgWuWZdoYElI3a_XoPbjTOC5zE24Phg3l0DumFxQ-qj-mCvB4-cjaAaM__eYEEYVCGXF6wCow7RUJS1303T6JD-dd4vqW-cglpRKHdTjijFZw/s320/rr.jpg" width="248" /></a></div><br />
<br />
<div style="text-align: center;"><span style="color: black; font-family: "Calibri","sans-serif"; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><strong>Types of elasticity</strong></span></div><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"></span><br />
<span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV6x3Mv8D_uiXv7gbjt1Y95QHM9JTFZIxg3q5e4LSOOIsoKcMGTaaB_fbf-UbRIPjN3Tnu1UBp1N4NK3zFpxRywywsCUBFpQntcL6PwJChI0c16oLB-KiuGcwihJYGtxg7GtBIJ1e9MEw/s1600/fairly+elastic.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="329" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV6x3Mv8D_uiXv7gbjt1Y95QHM9JTFZIxg3q5e4LSOOIsoKcMGTaaB_fbf-UbRIPjN3Tnu1UBp1N4NK3zFpxRywywsCUBFpQntcL6PwJChI0c16oLB-KiuGcwihJYGtxg7GtBIJ1e9MEw/s640/fairly+elastic.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCA4IFR5T0fWRycMR6uFK8kazBQEuyWcGciv9lt2KFsiW5sSivfPnL1Mr-ho8dx2Z0kLlEmb6n3wo7tvmMAJaUFIGUIBf2d-IzrFOGTDdLIzyyADR9mxwujs4x0lDnB8zB65z-0hl3xIs/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCA4IFR5T0fWRycMR6uFK8kazBQEuyWcGciv9lt2KFsiW5sSivfPnL1Mr-ho8dx2Z0kLlEmb6n3wo7tvmMAJaUFIGUIBf2d-IzrFOGTDdLIzyyADR9mxwujs4x0lDnB8zB65z-0hl3xIs/s640/Slide1.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6UjuKaD9g8XOYGQDnnBxT_q2FKaEqRXxUoUbamuO_BRZFTOKLBphS_mHhovmHjRPUwPVYpV3eQV4NC6Teyej2F6usePUM9woaha8fuyMIUkbemwRdFSgH-eGUOQP6cokGLk2iJXdzdy0/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="276" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6UjuKaD9g8XOYGQDnnBxT_q2FKaEqRXxUoUbamuO_BRZFTOKLBphS_mHhovmHjRPUwPVYpV3eQV4NC6Teyej2F6usePUM9woaha8fuyMIUkbemwRdFSgH-eGUOQP6cokGLk2iJXdzdy0/s640/Slide2.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfRaFiQKCK5DrqAhtWfwXcjVe-0lQMRyjOX3JxZ30Hds_1umnAZcUNFj39sZ99sJFcakGu7FNzrMD8gM4o7AoXUj6R6m1XzZHNqeuBobpwGYQzf4kxK-2P0nRnl_JhOZ74O1_35aEzRAY/s1600/Slide3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="322" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfRaFiQKCK5DrqAhtWfwXcjVe-0lQMRyjOX3JxZ30Hds_1umnAZcUNFj39sZ99sJFcakGu7FNzrMD8gM4o7AoXUj6R6m1XzZHNqeuBobpwGYQzf4kxK-2P0nRnl_JhOZ74O1_35aEzRAY/s640/Slide3.JPG" width="640" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijEWoYb1EVJSeRZCTcaOI7e7l3slZXiPRtRix5S_B18EhJwzx2S1EqcAMnSmgJAPVIBNu2ukNvC3XozuoRAq1-6GLe3g6gU_P_4dbCHicJkTR2iWS53YyZC_U4miVCAcTFipzaONI6G98/s1600/Slide4.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijEWoYb1EVJSeRZCTcaOI7e7l3slZXiPRtRix5S_B18EhJwzx2S1EqcAMnSmgJAPVIBNu2ukNvC3XozuoRAq1-6GLe3g6gU_P_4dbCHicJkTR2iWS53YyZC_U4miVCAcTFipzaONI6G98/s400/Slide4.JPG" width="327" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: red;"><u><span style="font-size: large;">B. Income elasticity of demand (ε<sub>y</sub>)<o:p></o:p></span></u></span></span></b></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: Times New Roman; font-size: small;"> </span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 172.45pt;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: 12pt; line-height: 115%;">Definition <o:p></o:p></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: Times New Roman; font-size: small;"> </span><span style="font-size: 12pt; line-height: 115%;">-->>Income elasticity of demand measures the responsiveness of change in the quantity demand for a product due to a change in income. </span><span style="font-size: 12pt; line-height: 115%;">Income elasticity are used to determine typed of the product either luxuries goods, necessity goods or giffen/ inferior goods. </span></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2dt4e0Wp66VayldXUVZ5-zUAJvKWFZxDdeI07kEru8822Kbtcp9zCivTMXDS95lToODBbXlafZUJm7lixEhsBKrXCWcUOSE9YeAnijViE-E8oq1Xp-dMt4-xAZtX-G-HMNOVsHya09cU/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="166" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2dt4e0Wp66VayldXUVZ5-zUAJvKWFZxDdeI07kEru8822Kbtcp9zCivTMXDS95lToODBbXlafZUJm7lixEhsBKrXCWcUOSE9YeAnijViE-E8oq1Xp-dMt4-xAZtX-G-HMNOVsHya09cU/s320/Slide1.JPG" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: small;"><span style="font-family: Times New Roman;"> <span style="font-size: 12pt; line-height: 115%;">Example; <o:p></o:p></span></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: small;"><span style="font-family: Times New Roman;"> <b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Question:</span></b><span style="font-size: 12pt; line-height: 115%;"> If income increases from RM2500 to RM3500 and the quantity demanded for the product increases by 40 to 60 units, calculate the income elasticity of demand.<o:p></o:p></span></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: small;"><span style="font-family: Times New Roman;"> <b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-family: Times New Roman;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Answer:</span></b><span style="font-size: 12pt; line-height: 115%;"> Q<span style="font-size: small;"><sub>1</sub> = 60, Q<sub>0</sub> = 40, Y<sub>1</sub> = RM3500, Y<sub>0 </sub>= RM2500</span></span></span></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-LucL3eGPLzpNfe_Y5KeQbsiRZZG_R54ZkxuqAurSyzK7nM_hXEBwVnlWVXAY5B9F05zR_fJulKRAGVf-4a8F-Xh4P45QqrUrbQKeRLecmMHMx6vxFcuV52ThWk6E_bRsVrkAD4iXewU/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Times New Roman; font-size: small;"><img border="0" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-LucL3eGPLzpNfe_Y5KeQbsiRZZG_R54ZkxuqAurSyzK7nM_hXEBwVnlWVXAY5B9F05zR_fJulKRAGVf-4a8F-Xh4P45QqrUrbQKeRLecmMHMx6vxFcuV52ThWk6E_bRsVrkAD4iXewU/s320/Slide2.JPG" width="320" /></span></a></div><div align="center" class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: Times New Roman;"><span style="font-size: small;"> </span><span style="font-size: small;"> interpreted the value of income elasticity</span></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDEIVXR13g7W88Fy5om_wpIzMhjrmfWUaqnCE3CqPn2ICBcvYL7zTblTpJ0nRJdBqLHE7jQgFUGrhtOlAGr1J0Lg7gvhv_3jLCaD7ewd8fMGhCAn06yrRh2PHhpNzrLAdBpADENGjd388/s1600/tt.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDEIVXR13g7W88Fy5om_wpIzMhjrmfWUaqnCE3CqPn2ICBcvYL7zTblTpJ0nRJdBqLHE7jQgFUGrhtOlAGr1J0Lg7gvhv_3jLCaD7ewd8fMGhCAn06yrRh2PHhpNzrLAdBpADENGjd388/s640/tt.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Elasticity for normal goods</span></b><span style="font-size: 12pt; line-height: 115%;"> is a condition in which the quantity demand for a product increase as income increases although the income increases faster than quantity demand. </span></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Elasticity for luxuries goods</span></b><span style="font-size: 12pt; line-height: 115%;"> is a condition in which as the income increases, the quantity demand for a product increases and vice versa. </span></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Elasticity for giffen goods or inferior goods</span></b><span style="font-size: 12pt; line-height: 115%;"> is a condition in which the quantity demand for a product decreases as income increases.</span></div><div class="separator" style="clear: both; text-align: left;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Elasticity for necessity goods</span></b><span style="font-size: 12pt; line-height: 115%;"> is a condition in which the quantity demanded for a product does not change even though income increases. <o:p></o:p></span></div><br />
<br />
<br />
<br />
<div class="separator" style="clear: both; text-align: left;"><span style="font-family: Times New Roman; font-size: small;"> <strong><span style="color: red;"><u>C. <span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Cross-price elasticity of demand (ε<sub>AB</sub>)<o:p></o:p></span></span></u></span></strong></span></div><span style="font-family: Times New Roman; font-size: small;"><div class="separator" style="clear: both; text-align: left;"></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; tab-stops: 1.0in; text-align: justify;"><br />
</div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Definition <o:p></o:p></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Cross-price elasticity of demand measures can be defines as the degree of responsiveness of quantity demanded of goods A to change in price of goods B. <o:p></o:p></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"></span></span></div><div class="separator" style="clear: both; text-align: left;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Cross elasticity used to determine relationship of the goods either substitute’s goods, complements goods or independents goods. <o:p></o:p></span></span></div><div class="separator" style="clear: both; text-align: left;"></div></span><div class="separator" style="clear: both; text-align: left;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxNxj6GPfkSeWZdqMPfrmm5cAW9sYgN-HHjz6jffVxxuIdXENWef7f0_liGMvusnRSa4zFtjOw8cyK0HrI1IOD41a-448OMODnuLnjcw1nbzOJ5AuKKDJ4xonQhm63lVASOw8vGS2KoPc/s1600/Slide1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="146" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxNxj6GPfkSeWZdqMPfrmm5cAW9sYgN-HHjz6jffVxxuIdXENWef7f0_liGMvusnRSa4zFtjOw8cyK0HrI1IOD41a-448OMODnuLnjcw1nbzOJ5AuKKDJ4xonQhm63lVASOw8vGS2KoPc/s320/Slide1.JPG" width="320" /></a></div><br />
<span style="font-family: Times New Roman; font-size: small;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: 12pt; line-height: 115%;">Example; <o:p></o:p></span></div><span style="font-family: Times New Roman; font-size: small;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 1in; tab-stops: 172.45pt;"><span style="font-size: 12pt; line-height: 115%;">Question: If the quantities demand for chicken increases from 120 to 160 units when the price of beef increase from RM15 to RM18, calculate the cross elasticity of demand between chicken and beef.<o:p></o:p></span></div><span style="font-family: Times New Roman; font-size: small;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt 1in; tab-stops: 172.45pt;"><span style="font-size: 12pt; line-height: 115%;">Answer:<span style="mso-spacerun: yes;"> </span>Q<sub>1A</sub> = 160, Q<sub>0A</sub> = 120, P<sub>1B</sub> = 18, P<sub>0B</sub> = 15</span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZYnLyh4lgqrr-KZ3w7EM9JSvPUZOwG4rS21XVjoP6K6PoHP-j1gADSttEKp-FSdYoukNKkdhg0HZT_l3vxi8dLZsoLQ-Kosgmz-tHv8gQg1N7b6FK_fmDu0VnLclHg4J0svwmN7KymZA/s1600/Slide2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="222" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZYnLyh4lgqrr-KZ3w7EM9JSvPUZOwG4rS21XVjoP6K6PoHP-j1gADSttEKp-FSdYoukNKkdhg0HZT_l3vxi8dLZsoLQ-Kosgmz-tHv8gQg1N7b6FK_fmDu0VnLclHg4J0svwmN7KymZA/s320/Slide2.JPG" width="320" /></a></div><div class="MsoNormal" style="margin: 0in 0in 10pt 1in; tab-stops: 172.45pt;"><br />
</div><div style="text-align: center;"><span style="font-family: Times New Roman; font-size: small;"> <span style="color: red;">interpreted the value of elasticity</span></span></div><div style="text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg461Fpv6sKXViD8bdOHQP7MrCxdyXaJDlozNQwScuUGnsOHUZbnvvbw5wv5ng4FzQA1zVTh9Z4V6tLnQlSGSceY9JruMmqCzXhOWobhqeAvRYr1iExD58tZ5x5DRf79iglfaKOYorIEC8/s1600/Slide3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg461Fpv6sKXViD8bdOHQP7MrCxdyXaJDlozNQwScuUGnsOHUZbnvvbw5wv5ng4FzQA1zVTh9Z4V6tLnQlSGSceY9JruMmqCzXhOWobhqeAvRYr1iExD58tZ5x5DRf79iglfaKOYorIEC8/s640/Slide3.JPG" width="640" /></a></div></span><br />
<div class="separator" style="clear: both; text-align: center;"></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-25356916023839514392012-03-04T20:07:00.000-08:002012-03-04T20:07:13.923-08:00Exercise micro chapter 2: Demand and Supply<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Exercise Chapter 2 : Demand and Supply</span></span></b><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></b><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">The following table shows the demand and supply schedule for computers.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></span></div><br />
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 41.4pt; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 444px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Price (RM)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Demanded (units)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Supplied (units)<o:p></o:p></span></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">7000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">2000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">14000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">12000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">5000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">10000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">10000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">14000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">8000<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" width="120"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">3000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 117pt;" width="156"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">18000<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.75in;" width="168"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6000<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">What is the meaning of equilibrium price?<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">What are the equilibrium and quantity of computers based on the above table?<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Based on the above figure, plot the demand and supply curve in the same graph paper.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">The following schedules show the demand and supply for a product.<o:p></o:p></span></span></div><br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin: auto auto auto 30.55pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 544px;"><tbody>
<tr style="height: 15pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td nowrap="" style="background-color: transparent; border: 1pt solid windowtext; height: 15pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Price<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Consumer X<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Consumer Y<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Consumer Z<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Producer A<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Producer B<o:p></o:p></span></span></b></div></td> <td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Producer C<o:p></o:p></span></span></b></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 1;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">60<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 2;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">50<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 3;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 4;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">25<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">50<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">35<o:p></o:p></span></span></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 5;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">50<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">20<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">60<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">40<o:p></o:p></span></span></div></td> </tr>
<tr style="height: 15pt; mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 48pt;" width="64"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">60<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 62pt;" width="83"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 61.35pt;" width="82"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59pt;" width="79"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">45<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">70<o:p></o:p></span></span></div></td> <td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58pt;" width="77"> <div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="color: black; font-size: 12pt; mso-bidi-font-family: Tahoma; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">45<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l2 level1 lfo3; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">a.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Calculate the market demand and supply<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l2 level1 lfo3; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">b.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Plot the market demand curve and market supply curve on the same graph paper<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l2 level1 lfo3; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">c.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Determine the market equilibrium price and quantity<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l2 level1 lfo3; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">d.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">At the price of RM40, state whether there is a surplus or shortage.<span style="mso-spacerun: yes;"> </span>How much is the surplus or shortage.<o:p></o:p></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l2 level1 lfo3; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">e.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Based on the market demand and market supply, find the value of demand elasticity if the price increases from RM20 to RM40.<o:p></o:p></span></span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-88942186297840025182012-03-04T20:02:00.002-08:002012-03-04T20:02:36.093-08:00Price Regulation<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9dsUsIH5AHXDfytfGvXqFzN1Y_iLCTI9M3xq0hoLtmg9ovkBCjVR6Nttv8JXcPcNtE2S2ZETrKD_XIUm5K60H9a9SUWfyWQZ5YTFzfSbg03m8vxfOefRM_eYACMOkpdScX6PmIOzB-no/s1600/celing+prolicy.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9dsUsIH5AHXDfytfGvXqFzN1Y_iLCTI9M3xq0hoLtmg9ovkBCjVR6Nttv8JXcPcNtE2S2ZETrKD_XIUm5K60H9a9SUWfyWQZ5YTFzfSbg03m8vxfOefRM_eYACMOkpdScX6PmIOzB-no/s400/celing+prolicy.jpg" width="400" /></a></div><br />
<br />
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Maximum Price or Ceiling Price</span></span></b><br />
<div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Government imposed regulations that prevent prices from rising above a maximum level set by the government which can lead to shortage.</span></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">A price ceiling is imposed by the government below the equilibrium price (market price). That price is not allowed to rise above this level. Although, it is allowed to fall below it..</span></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="font-family: Times New Roman;"> </span><span style="font-size: 12pt; line-height: 115%;">Problem; emergence of black market<o:p></o:p></span></span></div><div style="text-align: justify;"><span style="font-family: Times New Roman;"></span><span style="font-size: 12pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="mso-list: Ignore;">-<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Black market is where people ignore the government’s price and quantity controls and sell illegally at whatever price equates illegal demand and supply. </span></div><div style="text-align: justify;"></div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><o:p><span style="font-family: Times New Roman;"></span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b></o:p></span></div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><o:p><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Minimum Price or Floor Price<o:p></o:p></span></b></o:p></span></div><div style="text-align: justify;"><span style="font-family: Times New Roman;"></span><span style="font-size: 12pt; line-height: 115%;">Government imposed regulations that prevent price from falling below a minimum level set by the government which can lead to surplus. </span><span style="font-size: 12pt; line-height: 115%;">A price floor is imposed by the government above the equilibrium price (market price). That price is not allowed to fall below this level. Although, it is allowed to rise above it</span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-28254410742469458892012-02-29T05:21:00.000-08:002012-02-29T05:21:13.621-08:00Price Determination<div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">In this topic, we will focus on how market price and market quantity are determined. So, we will determine the market equilibrium. </span></span></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"></span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Definition of Market equilibrium </span></span></b></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Market equilibrium is a situation when quantity demanded and quantity supplied are equal and there is no tendency for price or quantity to change.</span></span></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"></span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Quantity Demanded (Qd) = Quantity Supply (Qs)</span></span></b></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;"><u>Market equilibrium</u> is determined by the intersection of both the demand and supply curves. By plotting demand and supply curve on the same set of exist as in figure 2.8, it possible to graphically see how the equilibrium price and quantity are determined. </span></span></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"></span><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: Calibri;">Table 2.7: Determinant of equilibrium Price and Quantity<o:p></o:p></span></span></div><div style="text-align: justify;"> </div><div style="text-align: justify;"><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 86.2pt; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Price (RM)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Demanded (units)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Quantity Supplied (units)<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Market Condition<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">1<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Shortage <o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Shortage <o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">3<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">6<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Equilibrium <o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Surplus <o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 47.7pt;" width="64"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 112.25pt;" width="150"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 110.8pt;" width="148"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">10<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 111.45pt;" width="149"> <div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="font-size: 12pt;"><span style="font-family: Calibri;">Surplus <o:p></o:p></span></span></div></td> </tr>
</tbody></table></div><div style="text-align: justify;"> </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><strong><span style="color: magenta; font-family: "Courier New", Courier, monospace;">Shortage</span></strong></div><div style="text-align: justify;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnorB5qfpSSFzjx7ek7RTC3_XbT23Sr3CJ6NWFZYP96tfvpm6JR5BqqKmljSojw0s0ANXTx_0B8assn0tMO-tQpCCf2i6QW3QOAb4YZ2ePuXmFfuQ-VJtwnak0VRWjOV4lD1eK69B5z_k/s1600/shortage.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnorB5qfpSSFzjx7ek7RTC3_XbT23Sr3CJ6NWFZYP96tfvpm6JR5BqqKmljSojw0s0ANXTx_0B8assn0tMO-tQpCCf2i6QW3QOAb4YZ2ePuXmFfuQ-VJtwnak0VRWjOV4lD1eK69B5z_k/s320/shortage.jpg" width="320" /></a></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"> <span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b></span></div><div style="text-align: justify;"><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Shortage </span></b><span style="font-size: 12pt; line-height: 115%;">is the situation where the price was set up below than equilibrium price. In others words, the quantity demanded is greater than the quantity supplied. In figure 2.8, at the price RM10, buyers are willing to buy 15 units but sellers only sell 5 units. There is occurring the excess demand. The amount of excess demand (shortage) is 10 units (Qd – Qs). If the shortage happened, the rational customer or producer will accept that price and sell back at the market price. </span></span></div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"><strong>Surplus</strong></span></span></div><div style="text-align: justify;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiYCRepVd-CH9JF0L9pAQutrLMma4HOjZRiEw05jqDfPW_BvAWfue4WpGQwFhD4gPKCjDuE4wlBzaxNZ4eKkwvMho6tDw29h_6-9ro-4QSFW0EDLk8w6LrV_XaOsDn_HFWvOHDFIeZTxw/s1600/surpluss.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiYCRepVd-CH9JF0L9pAQutrLMma4HOjZRiEw05jqDfPW_BvAWfue4WpGQwFhD4gPKCjDuE4wlBzaxNZ4eKkwvMho6tDw29h_6-9ro-4QSFW0EDLk8w6LrV_XaOsDn_HFWvOHDFIeZTxw/s320/surpluss.jpg" width="320" /></a></div><div style="text-align: justify;"><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><strong>Surplus </strong></span><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is the situation where the price was set up above than equilibrium price. In others words, the quantity supplied is greater than the quantity demanded. In figure 2.9, at the price RM15, sellers are produce 15 units but buyers only buy 5 units. There is occurring the excess supply. The amount of excess supply (surplus) is 10 units (Qs – Qd). </span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-45725620929738955992012-02-29T05:08:00.000-08:002012-02-29T05:08:33.738-08:00Change in quantity supply (movement) and change in supply (shift).<div style="text-align: center;"> <b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-family: "Courier New", Courier, monospace;">Change in quantity supply (movement) and change in supply (shift).</span></span></b></div><div style="text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4bD5HhtE-p0ZU-Vjv3ToCLKmwKzmDo5PQZoAQaPmjTdpFUXQyUuLtTh8YEIqJCw_M0XC37EaL4AmvUJUqyxo7LeU-1NLRLw6wZkRFJ3K6WkaYyZMryp8ANPhkngYoyNbUMtkIKHrMr0c/s1600/im.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4bD5HhtE-p0ZU-Vjv3ToCLKmwKzmDo5PQZoAQaPmjTdpFUXQyUuLtTh8YEIqJCw_M0XC37EaL4AmvUJUqyxo7LeU-1NLRLw6wZkRFJ3K6WkaYyZMryp8ANPhkngYoyNbUMtkIKHrMr0c/s640/im.jpg" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;">Click Picture to zoom out</div><div style="text-align: center;"><br />
</div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-86731345721578269822012-02-12T06:51:00.000-08:002012-02-12T07:38:46.031-08:00Example final exam: Chapter 1<div style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="color: red; font-family: "Courier New", Courier, monospace; font-size: large;">Example of final exam questions</span></span></b></div><div style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="font-family: "Courier New", Courier, monospace;"><span style="font-size: large;"><span style="color: cyan;">"Chapter 1"<o:p></o:p></span></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; tab-stops: .5in;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt; mso-add-space: auto; tab-stops: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;">Section A; Multiple choice questions.</span></span></span></b></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; tab-stops: .5in;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="line-height: 115%;">1. </span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Scarcity is a problem:</span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoBodyTextIndent" style="line-height: 115%; margin: 0in 0in 0pt 0.5in; tab-stops: .5in 58.5pt; text-indent: 0in;"><span style="font-family: "Calibri","sans-serif"; line-height: 115%; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Tahoma; mso-hansi-theme-font: minor-latin;"><span style="color: black; font-family: "Courier New", Courier, monospace;">A. measured by the amount of goods available.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">B.<span style="mso-tab-count: 2;"> </span>of the poor, but not the rich.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">C.<span style="mso-tab-count: 2;"> </span>because human wants are unlimited while resources are limited.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">D.<span style="mso-tab-count: 1;"> </span>only in industrialized economies<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="mso-tab-count: 1;"> </span></span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-hyphenate: none; mso-list: l2 level1 lfo1; tab-stops: 0in list .5in left .8in; text-indent: -0.75in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Which of the following is a characteristics of capitalism</span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 57.75pt; mso-hyphenate: none; mso-list: l2 level2 lfo1; tab-stops: 0in .5in list 57.75pt; text-indent: -21.75pt;"><span style="color: black;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">A.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">an economic system characterized by private ownership of resources and </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;">market.</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: 0in .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">B.<span style="mso-spacerun: yes;"> </span>an economic system that include a mixture of command and market system.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: 0in .5in .8in;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;">C.<span style="mso-spacerun: yes;"> </span>a system that answers the what, How, and For Whom question by central </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;">authority.</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: 0in .5in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">D.<span style="mso-spacerun: yes;"> </span>an economic system that follows the syariah.</span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="mso-tab-count: 1;"> </span><b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-hyphenate: none; tab-stops: .5in; text-align: justify; text-justify: inter-ideograph;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="line-height: 115%;">3.<span style="mso-tab-count: 1;"> </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Which of the following is <b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">not</i></b> a resource?</span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">A.<span style="mso-tab-count: 2;"> </span>Land.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">B.<span style="mso-tab-count: 2;"> </span>Labor.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">C.<span style="mso-tab-count: 2;"> </span>Money.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">D.<span style="mso-tab-count: 2;"> </span>Capital.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="letter-spacing: -0.15pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="mso-tab-count: 1;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></span></span><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="line-height: 115%;">4.<span style="mso-tab-count: 1;"> </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">The analysis of the behaviour decision-making units is the definition of :</span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">A.<span style="mso-tab-count: 2;"> </span>macroeconomics.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">B.<span style="mso-tab-count: 2;"> </span>microeconomics.</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="color: black; font-family: "Courier New", Courier, monospace;">C.<span style="mso-tab-count: 2;"> </span>positive economics</span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">D.<span style="mso-tab-count: 2;"> </span>normative economics</span><span style="line-height: 115%;">.</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-hyphenate: none; tab-stops: .5in .8in;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;">5.<span style="mso-spacerun: yes;"> </span><span style="mso-no-proof: yes;">Which of the following is a <b style="mso-bidi-font-weight: normal;">normative statement?</b></span></span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l4 level1 lfo2; tab-stops: list .5in; text-indent: 0in;"><span style="color: black;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">A.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;">The government must lower the prize of essential goods to decrease t</span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;"><span style="font-family: "Courier New", Courier, monospace;">he inflation.</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l4 level1 lfo2; tab-stops: list .5in; text-indent: 0in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">B.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;">the price of this shoes is RM50. </span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l4 level1 lfo2; tab-stops: list .5in; text-indent: 0in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;"></span></span><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">C.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;">I get grade A in macroeconomics exam. </span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; mso-list: l4 level1 lfo2; tab-stops: list .5in; text-indent: 0in;"><span style="color: black;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">D.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;">An increase in the collage tuition fees will cause a few of students </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma; mso-no-proof: yes;"><span style="font-family: "Courier New", Courier, monospace;">to apply for collage.</span></span></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt 0.25in;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: magenta;"><span style="line-height: 115%;">6.<b style="mso-bidi-font-weight: normal;"><span style="mso-tab-count: 1;"> </span></b></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Which of the following might be considered to be a characteristic of a planned economy?</span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><o:p><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></o:p></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo3; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">A.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">There is no incentive for people to work hard.</span></span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo3; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">B.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Goods and services produced reflect consumer sovereignty.</span></span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo3; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">C.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">Price is relatively unimportant as a means of allocating resources.</span></span></span></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo3; text-indent: -0.5in;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">D.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">All income is completely evenly distributed.</span></span></span><br />
<br />
<br />
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt; mso-add-space: auto; tab-stops: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"><span style="font-size: large;"><span style="color: red;"><span style="font-family: "Courier New", Courier, monospace;">Section B;<o:p></o:p></span></span></span></span></b></div><span style="font-family: "Courier New", Courier, monospace;"><br />
</span><span style="font-family: "Courier New", Courier, monospace;"> </span><span style="font-family: "Courier New", Courier, monospace;"> </span><span style="line-height: 115%;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;">1.<o:p></o:p></span></span></span><br />
<span style="color: magenta; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; tab-stops: 0in; text-align: justify; text-justify: inter-ideograph;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="line-height: 115%;">(a)<span style="mso-tab-count: 1;"> </span>Differentiate between microeconomics and macroeconomics. (<span style="color: black;">4 marks</span>)</span><span style="line-height: 115%;"><o:p> </o:p></span></span></span></div><div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-add-space: auto; tab-stops: 0in; text-align: justify; text-justify: inter-ideograph;"><span style="line-height: 115%;"><o:p></o:p></span><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="line-height: 115%;">(b)<span style="mso-tab-count: 1;"> </span>Define the Production Possibilities Curve (PPC). State fours (4) assumptions to illustrate the PPC.<span style="mso-tab-count: 5;"> </span>(<span style="color: black;">6 marks</span>)</span><span style="line-height: 115%;"><span style="mso-tab-count: 2;"> </span><o:p></o:p></span></span></span></div><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"> <span style="line-height: 115%;">(c)<span style="mso-tab-count: 1;"> </span> State five characteristics of free market economic system. <span style="mso-tab-count: 1;">(</span><span style="color: black;">5 marks</span>)</span><span style="line-height: 115%;"><o:p> </o:p></span></span></span><br />
<span style="color: magenta; font-family: Georgia, "Times New Roman", serif;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt; mso-add-space: auto; tab-stops: 0in; text-align: justify; text-justify: inter-ideograph;"><span style="font-size: 12pt; line-height: 115%;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-tab-count: 10;"> </span><span style="mso-spacerun: yes;"> </span>(<span style="color: black;">Total: 15 marks</span>)<o:p></o:p></span></span></span></div><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 0pt; mso-add-space: auto; tab-stops: 0in; text-align: justify; text-justify: inter-ideograph;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt; tab-stops: 79.0pt 356.5pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;"><span style="font-size: large;"><span style="color: red;">Section C; Quantitative Question<o:p></o:p></span></span></span></span></b></div><br />
<br />
<table align="left" border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto 6.75pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-table-anchor-horizontal: margin; mso-table-anchor-vertical: paragraph; mso-table-left: center; mso-table-lspace: 9.0pt; mso-table-rspace: 9.0pt; mso-table-top: 40.35pt; mso-yfti-tbllook: 480;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">Combination<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">motorcycles<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(thousands)<o:p></o:p></span></span></b></div></td> <td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">laptop<o:p></o:p></span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">(thousands)<o:p></o:p></span></span></b></div></td> </tr>
<tr style="height: 15.75pt; mso-yfti-irow: 1;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15.75pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">A<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15.75pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">30<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15.75pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">0<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">B<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">26<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">1<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">C<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">21<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">2<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">D<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">15<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">3<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">E<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">8<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">4<o:p></o:p></span></span></div></td> </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 109.8pt;" width="146"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">F<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">0<o:p></o:p></span></span></div></td> <td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.6in;" width="154"><div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; mso-element-anchor-horizontal: margin; mso-element-anchor-vertical: paragraph; mso-element-frame-hspace: 9.0pt; mso-element-left: center; mso-element-top: 40.35pt; mso-element-wrap: around; mso-element: frame; mso-height-rule: exactly; tab-stops: 1.0in 371.4pt; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="font-family: Calibri;">5<o:p></o:p></span></span></div></td> </tr>
</tbody></table><br />
<div style="text-align: center;"></div><div style="text-align: center;"><br />
</div><div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo2; tab-stops: 79.0pt 356.5pt; text-align: center; text-indent: -0.5in;"><br />
</div><div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo2; tab-stops: 79.0pt 356.5pt; text-align: center; text-indent: -0.5in;"><br />
</div><div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo2; tab-stops: 79.0pt 356.5pt; text-align: left; text-indent: -0.5in;"><br />
</div><div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo2; tab-stops: 79.0pt 356.5pt; text-align: left; text-indent: -0.5in;"><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><strong>1.</strong> </span></span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;">The following table shows the production possibilities for motorcycle and laptop.</span></span></span></div><div class="MsoListParagraph" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo2; tab-stops: 79.0pt 356.5pt; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(a)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Fill in the opportunity cost(motorcycles forgone) of producing the first through the fifth laptops.<span style="mso-tab-count: 1;"> </span>(<span style="color: black;">2 marks</span>)</span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(b)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Referring to above table, draw the production possibility curve. (<span style="color: black;">4 marks</span>)</span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(c)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Based on the diagram (b), explain the concept of scarcity, choice and opportunity cost.<span style="mso-tab-count: 2;"> </span>(<span style="color: black;">6 marks</span>)</span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(d)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Between which points (combinations) is the opportunity cost per thousands unit of laptops the highest?<span style="mso-tab-count: 5;"> </span>(<span style="color: black;">2 marks</span>)</span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="mso-tab-count: 3;"> </span></span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(e)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Label point Y inside the curve. Explain why this is inefficient point. (<span style="color: black;">3 marks</span>) </span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(f)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Label point Z outside the curve. Explain why this is an unattainable point.</span><span style="line-height: 115%; mso-bidi-font-family: Tahoma;"> (<span style="color: black;">3 marks)</span></span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(g)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Based on the diagram, identify all efficient points and explain why these points are efficient.<span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 1;"> </span>(<span style="color: black;">5 marks</span>)</span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(h)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Does this production possibilities curve reflect the law of increasing opportunity costs?<span style="mso-tab-count: 2;"> </span>(<span style="color: black;">3 marks</span>)</span></span></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; tab-stops: list .75in; text-align: left; text-indent: -0.5in;"><span style="font-family: Georgia, "Times New Roman", serif;"><span style="color: magenta;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">(i)<span style="font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">What is the shape of the production possibilities curve?<span style="mso-tab-count: 2;"> </span>(<span style="color: black;">2 marks</span>)</span></span><br />
<span style="line-height: 115%; mso-bidi-font-family: Tahoma;"><span style="mso-tab-count: 5;"> </span></span><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Tahoma;"><b style="mso-bidi-font-weight: normal;">(Total: 30 marks)<o:p></o:p></b></span></span></div><br />
<br />
<br />
</div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-53372298713058890832012-02-12T05:51:00.000-08:002012-02-12T05:51:35.100-08:00Microeconomics : Tutor 1<span style="color: magenta; font-family: "Courier New", Courier, monospace;">Please answer all questions. </span><br />
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-list: l4 level1 lfo4; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">1. </span></span><span style="mso-bidi-font-family: Tahoma;">Define economics?<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.5in;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.5in;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l4 level1 lfo4; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">2. </span></span><span style="mso-bidi-font-family: Tahoma;">Explain each of the economy's problems below. <o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l5 level1 lfo5; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">i.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Scarcity <o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l5 level1 lfo5; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">ii.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Choice <o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------</span>.<o:p></o:p></span></span></span></div><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"> <span style="mso-bidi-font-family: Tahoma;"><o:p> </o:p></span></span></span><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"></span></span><br />
<span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">iii.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;">Opportunity cost <o:p></o:p></span></span></span><br />
<span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"> <span style="mso-bidi-font-family: Tahoma;"><o:p> </o:p></span></span></span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l4 level1 lfo4; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">3. X</span></span><span style="mso-bidi-font-family: Tahoma;">plain the factors of production.<o:p></o:p></span></span></span></div><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"> <span style="mso-bidi-font-family: Tahoma;"><o:p> </o:p></span></span></span><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>i.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;"><span style="color: black;">---------------------------<o:p></o:p></span></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> i</span>i.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;"><span style="color: black;">---------------------------<o:p></o:p></span></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level1 lfo6; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>iii.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="mso-bidi-font-family: Tahoma;"><span style="color: black;">---------------------------<o:p></o:p></span></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><span style="mso-bidi-font-family: Tahoma;"><span style="font-family: "Courier New", Courier, monospace;"><span style="color: black;">------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="line-height: 115%; mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">4. The following table shows the production possibilities combination of country A that produces two products: CDs and TVs.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; height: 115px; margin: auto auto auto 62.75pt; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-table-layout-alt: fixed; mso-yfti-tbllook: 1184; width: 539px;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td rowspan="2" style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 79.8pt;" width="106"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">Production<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td colspan="5" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 263.1pt;" valign="top" width="351"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">combinations<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></tr>
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span>
<tr style="mso-yfti-irow: 1;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 51.6pt;" valign="top" width="69"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">A<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" valign="top" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">B<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" valign="top" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">C<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" valign="top" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">D<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">E<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></tr>
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span>
<tr style="mso-yfti-irow: 2;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 79.8pt;" valign="top" width="106"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">CD (million)<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 51.6pt;" width="69"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">0<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">5<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">10<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">15<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" width="66"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">20<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></tr>
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 79.8pt;" valign="top" width="106"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><b><span><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">TV (million)<o:p></o:p></span></span></span></b></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 51.6pt;" width="69"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">20<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">18<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">15<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 0.75in;" width="72"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">6<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" width="66"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;"><span style="mso-bidi-font-weight: bold;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;">0<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></td><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></tr>
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span></tbody></table><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l2 level1 lfo1; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">a.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">Based on the table above draw the production possibilities curve for country A.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l2 level1 lfo1; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">b.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">Calculate the opportunity cost<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo2; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>i.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">Of producing 5 million of CDs<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo2; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>ii.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">Of producing 15 million of CDs<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level1 lfo2; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>iii.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">When the production of CDs increases from 10 million to 20 million.<o:p></o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto;"><br />
</div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l2 level1 lfo1; text-indent: -0.5in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;">c.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">Country A wishes to produce 25 million CDs and 30 million units of TVs.</span><span style="line-height: 115%; mso-bidi-font-weight: bold;"><o:p> </o:p></span></span></span></div><span style="color: magenta; font-family: "Courier New", Courier, monospace;"> </span><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta;"><span style="font-family: "Courier New", Courier, monospace;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span>i.<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="line-height: 115%; mso-bidi-font-weight: bold;">What is the implication? </span><span style="font-family: "Calibri","sans-serif"; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: ZH-CN; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">Suggest two (2) ways in which this production combination can be achieved. </span></span></span></div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1in;"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1in;"><br />
</div><div align="center" class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l3 level1 lfo3; mso-text-indent-alt: -.25in; text-indent: -1in;"><span style="color: magenta; font-family: "Courier New", Courier, monospace;"><span style="font-family: "Calibri","sans-serif"; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: ZH-CN; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;">--- Goods Luck ---</span></span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-78913746531310884992012-01-03T23:15:00.001-08:002012-02-09T23:33:00.181-08:00Determinant of Supply<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Determinant of Supply</span></b><br />
<div class="MsoNormal" style="margin-left: 0.5in; tab-stops: .5in;"><br />
</div><div class="MsoListParagraphCxSpFirst" style="margin-left: 1in; mso-add-space: auto; mso-list: l0 level1 lfo1; tab-stops: .5in; text-indent: -0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Price of related goods</span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">The supply of a product can be influenced by the price of related goods:</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: .5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">a.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Substitute goods</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">Supply of a product will decrease if there is an increase in the price of a substitute product, for example Maxis and Celcom.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">When the price of Maxis increase, the quantity supplied will increase (law of supply) and the quantity supply of Celcom will be decrease. So, if price of substitute goods increase, supply curve for current goods will shift to the left.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">P</span></b><sub><span style="font-size: 12pt; line-height: 115%;">maxis<b style="mso-bidi-font-weight: normal;"> </b></span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">↑, Q<sub>s </sub></span></b><sub><span style="font-size: 12pt; line-height: 115%;">maxis</span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">↑ → SS</span></b><sub><span style="font-size: 12pt; line-height: 115%;">celcom</span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"> ↓</span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">b.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Complementary goods</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">An increase in the price of a product will increase the supply of a complementary product. For example, Petrol and Car.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">When the price of Car increases, the quantity of car supplied will increase and the supply on petrol will also increase since both are complementary goods. So, if the price of complementary goods increases, supply curve will shift to the right. </span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto;"><br />
</div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">P</span></b><sub><span style="font-size: 12pt; line-height: 115%;">Car<b style="mso-bidi-font-weight: normal;"> </b></span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">↑, Q<sub>s </sub></span></b><sub><span style="font-size: 12pt; line-height: 115%;">Car</span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">↑ → SS</span></b><sub><span style="font-size: 12pt; line-height: 115%;">petrol</span></sub><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"> ↑</span></b></div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: center;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: .5in; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">c.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Cost of production</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in;"></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">When the cost of production increase (price of production factor increase), quantity supplied will be decrease and vice versa. For example, an increase in wages of labor and price of capital equipment in production process will increase the cost of production and thus reduce the supply curve. So, cost of production increase, will shift the supply curve to the left. </span><br />
<br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: .5in; text-align: justify; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">d.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Expected future price</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">If the seller was expecting the price will increase in following month, the current quantities supplied will be decrease and vice versa. For example, when the government announces an increase in the price of sugar, the current supply will decrease because the supplier wants to gain a higher profit with a higher new price. </span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: justify;"><br />
</div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Pe ↑ → Qs </span></b><span style="font-size: 12pt; line-height: 115%;">now <b style="mso-bidi-font-weight: normal;">↓ → SS </b>shift to left</span></div><div align="center" class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; tab-stops: .5in; text-align: center;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">e.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Technological advance</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto;"></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">Changes in technology are the most important influences on supply. Existence of the new technology will reduce cost of production. So, the seller can increase their production. For example, when new technology was introduced in paddy harvesting, the supply of rice will be increased. So, the technology advance will shift the supply curve to the right.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">f.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-size: 12pt; line-height: 115%;">Number of sellers</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto;"></div><div class="MsoListParagraphCxSpLast" style="margin-left: 1.5in; mso-add-space: auto; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">The large number of firms supplying a product, the large quantity supplied of the product and vice versa. For example, if there is an increase in the number of cafeterias in a KPMBP, the supply of foods and drink will increase. So, if number of seller increase, supply curve will shift to the right and vice versa.</span></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com1tag:blogger.com,1999:blog-5285936079484316493.post-32666049290339269762012-01-03T22:54:00.000-08:002012-02-09T23:34:46.393-08:00Supply<style>
v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style> <b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">2.2<span style="mso-tab-count: 1;"> </span>Supply</span></b><br />
<br />
<div class="MsoNormal" style="margin-left: 0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Definition of supply </span></b><br />
</div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">Supply is refers to <b style="mso-bidi-font-weight: normal;">ability and willingness to sell</b> or produce a specific quantities of goods in a given period of time at a particular price, <i style="mso-bidi-font-style: normal;">ceteris paribus</i>. <i style="mso-bidi-font-style: normal;">Ceteris paribus</i> is a Latin phrase that means holding other factors constants while some other factors change. </span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b></div><div class="MsoNormal" style="margin-left: 0.5in;"><br />
</div><div class="MsoNormal" style="margin-left: 0.5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Law of Supply</span></b><br />
</div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">The law of supply states that there is a positive relationship between price of the product and quantity supplied. When the price of the product increase, the quantity supplied of that product will be increase and when the price of the product decrease, the quantity supplied of that product will be decrease, <i style="mso-bidi-font-style: normal;">ceteris paribus</i>. </span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;"></span></div><div class="MsoNormal" style="margin-left: 0.5in;"><br />
</div><div class="MsoNormal" style="margin-left: 0.5in;"><b><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Supply schedule and Supply curve</span></b><br />
</div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">The supply schedule for a product is a list of the quantity that a producer is willing to sell at different prices at one particular time. Table 2.4 shows the quantity supply of apples at each price level.</span></div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><br />
</div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Table 2.4: Individual Supply Schedule for apples. </span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><br />
</div><div align="center"><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin-left: 90.9pt; width: 353px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Combination </span></div></td> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Price (RM)</span></div></td> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Quantity (units)</span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">A</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">100</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">5</span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">B</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">80</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">4</span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">C</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">60</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">3</span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">D</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">40</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">2</span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">E</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 93.45pt;" valign="top" width="125"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">20</span></div></td> <td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 90.25pt;" valign="top" width="120"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">1</span></div></td> </tr>
</tbody></table></div><div class="MsoNormal" style="margin-left: 0.5in;"><br />
</div><div class="MsoNormal" style="margin-left: 0.5in;"><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">The above supply schedule can be shown in a diagram to show how we obtain a supply curve (see Figure 2.6)</span></div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"> </div><table cellpadding="0" cellspacing="0"><tbody>
<tr> <td></td></tr>
</tbody></table><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">The supply curve shows the relationship between the quantities supplied of a product and its price. The supply curve must slope upwards (positive slope) because the direct relationship between price and quantity demanded (according to the law of supply).</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVg7p_TecYL37PyOyScLAL1cveXyzfbq77p-rEqnfS7aLlAXiCDIZ8w36nWqzTZrd3GwQ2gpoBcsrlAlmn19dCfFAMPVadT33RATQ81ZGGQQzX2wqKdZaYa5Zw8zxNmkPousVycKzCcA4/s1600/supply+curve.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVg7p_TecYL37PyOyScLAL1cveXyzfbq77p-rEqnfS7aLlAXiCDIZ8w36nWqzTZrd3GwQ2gpoBcsrlAlmn19dCfFAMPVadT33RATQ81ZGGQQzX2wqKdZaYa5Zw8zxNmkPousVycKzCcA4/s320/supply+curve.jpg" width="320" /></a></div><br />
<div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;"> </span><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Individual supply and Market supply</span></b></div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">Individual supply is shows the relationship between the quantity of a product supplied by a single seller and its price.</span></div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">Market supply is shows the relationship between the total quantity of a product supplied by additional all quantities supply by all seller in the market and its price. </span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;"></span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> </span><span style="font-size: 12pt; line-height: 115%; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;"></span></div><div align="center" class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><br />
</div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><span style="font-size: 12pt; line-height: 115%;">To discuss about the market supply, assume only have two sellers in the market, for example Zaki and Epin. Table 2.5 shows both the individual supply and market supply for the apples.</span></div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin-left: 0.5in; text-align: center;"><span style="font-size: 12pt; line-height: 115%;"> </span><span style="font-size: 12pt; line-height: 115%;">Table 2.5: The individual and market supply for apples</span></div><span style="font-size: 12pt; line-height: 115%;"><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; height: 137px; margin-left: 90.9pt; width: 426px;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 108.45pt;" width="145"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Combination</span></b></div></td><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 55.7pt;" width="74"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Price (RM)</span></b></div></td><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59.85pt;" width="80"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Zaki (units)</span></b></div></td><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58.35pt;" width="78"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Epin (units)</span></b></div></td><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 57.55pt;" valign="top" width="77"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">Market Supply (units)</span></b></div></td></tr>
<tr style="mso-yfti-irow: 1;"><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 108.45pt;" valign="top" width="145"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">A</span></b></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 55.7pt;" valign="top" width="74"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">80</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59.85pt;" valign="top" width="80"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">8</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">10</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 57.55pt;" valign="top" width="77"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">18</span></div></td></tr>
<tr style="mso-yfti-irow: 2;"><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 108.45pt;" valign="top" width="145"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">B</span></b></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 55.7pt;" valign="top" width="74"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">60</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59.85pt;" valign="top" width="80"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">6</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">8</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 57.55pt;" valign="top" width="77"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">14</span></div></td></tr>
<tr style="mso-yfti-irow: 3;"><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 108.45pt;" valign="top" width="145"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">C</span></b></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 55.7pt;" valign="top" width="74"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">40</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59.85pt;" valign="top" width="80"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">4</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">6</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 57.55pt;" valign="top" width="77"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">10</span></div></td></tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"><td style="border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 108.45pt;" valign="top" width="145"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">D</span></b></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 55.7pt;" valign="top" width="74"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">20</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 59.85pt;" valign="top" width="80"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">2</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">4</span></div></td><td style="border-color: currentColor windowtext windowtext currentColor; border-style: none solid solid none; border-width: medium 1pt 1pt medium; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 57.55pt;" valign="top" width="77"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast;">6</span></div></td></tr>
</tbody></table></span><div align="center"> </div><div class="MsoNormal" style="margin-left: 0.5in; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXSsVUHEIL2IhK6MAsoj6feGFo316EsI6IatS9kZ5tU8pfA4J9YZuv7_nFsW8QHRvaYTVwIeCqLvmu6gMWLX8vntMybWJTe0lx31qZGT_VqD20HiR_DhR917papRN8mCIyN4HzVu7M_TA/s1600/supply+market.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><span style="font-size: 12pt; line-height: 115%;"> </span></div><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Plot the supply curve based on the information given in table 2.5 to show the market supply in a graph paper (see figure 2.7). </span><br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguq5qguHx5UMJ0O1YgfXvr30qdBmYyqIFQsqf4dWHh_DwJ4E985Ygmtrt8aUGHHtCFIkKwSe66CPS3ZwSLnq87esis61k8M_lHNGXpJP8EPA78C-ZvoSgVXVu_9S4o5tC_uMcB1PKTeIA/s1600/supply+market.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguq5qguHx5UMJ0O1YgfXvr30qdBmYyqIFQsqf4dWHh_DwJ4E985Ygmtrt8aUGHHtCFIkKwSe66CPS3ZwSLnq87esis61k8M_lHNGXpJP8EPA78C-ZvoSgVXVu_9S4o5tC_uMcB1PKTeIA/s400/supply+market.jpg" width="400" /></a></div>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0tag:blogger.com,1999:blog-5285936079484316493.post-89949949739058289992012-01-03T22:40:00.000-08:002012-01-03T22:40:05.779-08:00Change in Quantity Demanded (movement) and Change in Demand (Shift)<div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjah2_1qoms5w8hQZrgFqJ_9Ybr8SpfBiJcCdJc8Z0QFIhhTd8XaS-4rYGjjLZSx8F1qs65hpI2c5F-fVO1sfWltrEWWUmyNw_sxQ4oO5PSQjtFyinoIxp82PMqlRhsqAA41Sl-yBUrR-E/s1600/change+in+Qd.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjah2_1qoms5w8hQZrgFqJ_9Ybr8SpfBiJcCdJc8Z0QFIhhTd8XaS-4rYGjjLZSx8F1qs65hpI2c5F-fVO1sfWltrEWWUmyNw_sxQ4oO5PSQjtFyinoIxp82PMqlRhsqAA41Sl-yBUrR-E/s400/change+in+Qd.jpg" width="400" /></a></div><br />
<b>Change in Quantity Demanded (Movement)</b><br />
<br />
<!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves/> <w:TrackFormatting/> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-US</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> <w:SplitPgBreakAndParaMark/> <w:DontVertAlignCellWithSp/> <w:DontBreakConstrainedForcedTables/> <w:DontVertAlignInTxbx/> <w:Word11KerningPairs/> <w:CachedColBalance/> </w:Compatibility> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="--"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="267"> <w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/> <w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/> <w:LsdException Locked="false" Priority="39" Name="toc 1"/> <w:LsdException Locked="false" Priority="39" Name="toc 2"/> <w:LsdException Locked="false" Priority="39" Name="toc 3"/> <w:LsdException Locked="false" Priority="39" Name="toc 4"/> <w:LsdException Locked="false" Priority="39" Name="toc 5"/> <w:LsdException Locked="false" Priority="39" Name="toc 6"/> <w:LsdException Locked="false" Priority="39" Name="toc 7"/> <w:LsdException Locked="false" Priority="39" Name="toc 8"/> <w:LsdException Locked="false" Priority="39" Name="toc 9"/> <w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/> <w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/> <w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/> <w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/> <w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/> <w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/> <w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/> <w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/> <w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/> <w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/> <w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/> <w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/> <w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/> <w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/> <w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/> <w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/> <w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/> <w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/> <w:LsdException Locked="false" Priority="37" Name="Bibliography"/> <w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/> </w:LatentStyles> </xml><![endif]--><!--[if gte mso 10]> <style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}
</style> <![endif]--> <br />
<div class="MsoListParagraphCxSpFirst" style="margin-left: 27.15pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -27.15pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>i.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Situation</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Movement along the demand curve</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -27.15pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span>ii.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Factor</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Occurs when price of a product changes</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">(own price of the product)</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Others factors remain constant</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -27.15pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">iii.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Evidence </span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: 256.7pt; text-indent: -9.0pt;"><span style="font-family: Symbol; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; mso-no-proof: yes;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Upward movement</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Decrease in quantity demanded (contraction)</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Example; from B to A</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; mso-list: l1 level1 lfo2; tab-stops: 256.7pt; text-indent: -9.0pt;"><span style="font-family: Symbol; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; mso-no-proof: yes;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Downward movement</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Increase in quantity demanded</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">(expansion)</span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Example; form B to A</span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><span style="line-height: 115%;"> </span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><span style="line-height: 115%;">Change in Demanded (Shift)</span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><span style="line-height: 115%;"><br />
</span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJaQ2DrnmPmZiO6f26OH7jzTC7Eup1lDWPAGR5gpBeoPosFBBrTPZlnfVC0fsULwxSOdHZpdw7hT-kXClt9kfohjRwuYz1Gh222vY1SpyJ8l3CM6jfLHmXIBaxcz842HSfRZ72G_5W6c4/s1600/change+in+demanded.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJaQ2DrnmPmZiO6f26OH7jzTC7Eup1lDWPAGR5gpBeoPosFBBrTPZlnfVC0fsULwxSOdHZpdw7hT-kXClt9kfohjRwuYz1Gh222vY1SpyJ8l3CM6jfLHmXIBaxcz842HSfRZ72G_5W6c4/s400/change+in+demanded.jpg" width="400" /></a></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><span style="line-height: 115%;"><br />
</span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><span style="line-height: 115%;"><br />
</span></div><div class="MsoListParagraphCxSpLast" style="margin-left: 36.15pt;"><!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves/> <w:TrackFormatting/> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-US</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> <w:SplitPgBreakAndParaMark/> <w:DontVertAlignCellWithSp/> <w:DontBreakConstrainedForcedTables/> <w:DontVertAlignInTxbx/> <w:Word11KerningPairs/> <w:CachedColBalance/> </w:Compatibility> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="--"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="267"> <w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/> <w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/> <w:LsdException Locked="false" Priority="39" Name="toc 1"/> <w:LsdException Locked="false" Priority="39" Name="toc 2"/> <w:LsdException Locked="false" Priority="39" Name="toc 3"/> <w:LsdException Locked="false" Priority="39" Name="toc 4"/> <w:LsdException Locked="false" Priority="39" Name="toc 5"/> <w:LsdException Locked="false" Priority="39" Name="toc 6"/> <w:LsdException Locked="false" Priority="39" Name="toc 7"/> <w:LsdException Locked="false" Priority="39" Name="toc 8"/> <w:LsdException Locked="false" Priority="39" Name="toc 9"/> <w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/> <w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/> <w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/> <w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/> <w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/> <w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/> <w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/> <w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/> <w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/> <w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/> <w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/> <w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/> <w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/> <w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/> <w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/> <w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/> <w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/> <w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/> <w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/> <w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/> <w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/> <w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/> <w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/> <w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/> <w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/> <w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/> <w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/> <w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/> <w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/> <w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/> <w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/> <w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/> <w:LsdException Locked="false" Priority="37" Name="Bibliography"/> <w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/> </w:LatentStyles> </xml><![endif]--><!--[if gte mso 10]> <style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}
</style> <![endif]--> </div><div class="MsoListParagraphCxSpFirst" style="margin-left: 26.1pt; mso-add-space: auto; mso-list: l2 level1 lfo2; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -26.1pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"> </span>i.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Situation</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Shift in the demand curve (new curve)</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; mso-list: l2 level1 lfo2; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -27.15pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span>ii.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Factor</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Occurs when there are changes in other factors such as population, income, price of related goods, etc.</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Price of the product remains constant</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 27.15pt; mso-add-space: auto; mso-list: l2 level1 lfo2; mso-text-indent-alt: -.25in; tab-stops: 256.7pt; text-indent: -27.15pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">iii.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Evidence </span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 26.1pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Increase or decrease in demand curve</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 26.1pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 30.6pt; mso-add-space: auto; mso-list: l3 level1 lfo1; tab-stops: 256.7pt; text-indent: -9.0pt;"><span style="font-family: Symbol; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; mso-no-proof: yes;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Demand curve shift to right (increase) if;</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 71.1pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">D<sub>0</sub> → D<sub>1</sub></span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 48.6pt; mso-add-space: auto; mso-list: l0 level1 lfo3; tab-stops: 256.7pt; text-indent: -13.5pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Price of substitutes goods increases</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 48.6pt; mso-add-space: auto; mso-list: l0 level1 lfo3; tab-stops: 256.7pt; text-indent: -13.5pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Price of complement goods decrease</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 48.6pt; mso-add-space: auto; mso-list: l0 level1 lfo3; tab-stops: 256.7pt; text-indent: -13.5pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Income increases (Normal Goods)</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 48.6pt; mso-add-space: auto; mso-list: l0 level1 lfo3; tab-stops: 256.7pt; text-indent: -13.5pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Expected future price increases</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 48.6pt; mso-add-space: auto; mso-list: l0 level1 lfo3; tab-stops: 256.7pt; text-indent: -13.5pt;"><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Number of buyers increase</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 36.15pt; mso-add-space: auto; tab-stops: 256.7pt;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 30.6pt; mso-add-space: auto; mso-list: l3 level1 lfo1; tab-stops: 256.7pt; text-indent: -9.0pt;"><span style="font-family: Symbol; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; mso-no-proof: yes;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Demand curve shift to left (decrease) if;</span></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 71.1pt; mso-add-space: auto; tab-stops: 256.7pt;"><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">D<sub>0</sub> → D<sub>2</sub></span></div><ul><li><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Price of substitutes goods decreases</span></li>
<li><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Price of complement goods increase</span></li>
<li><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Income decreases (Normal Goods)</span></li>
<li><span style="line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-no-proof: yes;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span><span style="line-height: 115%; mso-bidi-font-size: 12.0pt; mso-no-proof: yes;">Expected future price decreases</span></li>
<li> <span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-no-proof: yes;">number of buyers decrease</span> </li>
</ul>amirhttp://www.blogger.com/profile/01708234911430597895noreply@blogger.com0