2:55 PM S 0 B/s DO [1 4G* 1 52% eco650 microrconomics Today, 2:52 PM PART D : CASE STUDIES QUESTION 1 (MICROECONOMICS) Government to impose price controls on essentials from April 15 until MCO ends PETALING JAYA: The government will impose a maximum price control scheme on essential items starting from April 15 until the end of the movement control order (MCO) period. Senior Minister Datuk Seri Ismail Sabri Yaakob said this was to ensure that irresponsible parties or traders would not take advantage. "The maximum price control scheme, which is normally imposed during festive seasons, need not wait and can be implemented immediately. The list of the products will be announced by the Domestic Trade and Consumer Affairs Ministry to ensure that there will be no increase of prices during the MCO." he told a press conference Sunday (April 12). The government had announced Friday (April 10) that the MCO will be extended by another two weeks, from April 15 to April 28, to curb the spread of Covid-19. Ismail said that the Domestic Trade and Consumer Affairs Ministry had conducted daily checks across the country on the availability of some 25 essential items in the market. He added that on Saturday (April 11), a total of 1,205 special spot checks were conducted involving businesses at retailers, wholesalers, and manufacturers. "Based on the checks on premises at the retailer level, almost all essential items are at a stable level, in terms of availability, including face masks and sanitisers." he said. Adapted from The Star Online, 12 April 2020 (https://www.thestar.com.myewsation/2020/04/12/govt-to-impose-price. controls on-essentials-from-april-15-until-mco-ends) 1) State the main purpose of the government imposing a ceiling price? (2 marks) 2) State the effect of the implementation of the price control scheme described in the second paragraph on consumers. (2 marks) 3)State the effect of the implementation of the price control scheme described in the second paragraph on sellers. (2 marks) 4)Referring to the statement in the third paragraph, state three (3) reasons why the government should conduct spot checks on retailers, wholesalers, and manufacturers? (3 marks) 5) Briefly explain how the price of goods is determined in the market without government intervention. (2 marks) 6) Discuss two (2) reasons for the increase in demand during MCO. (4 marks) 11 Delete Archive Move Reply More