1.8. When to Use the Supply-and-Demand Model 85 Exercises

b. Show how the increase in the minimum wage and higher rental fees at major shopping malls and retail outlets affected the supply curve of ready to-eat meals. Explain why the equilibrium price of a meal rose to Bt 40 from Bt 30.

c. In response to complaints from citizens about higher prices of meals, the government imposed price controls on 10 popular meals. Show the effect of these price controls in the market for meals.

d. What is the likely effect on the labor market of the price controls on meals?