1. In business analysis, theproduction possibility frontier(PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite endowment of resources by one country. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases in economy.

By using the Production Possibilities Frontier Curve (PPF), explain the concepts of:

1. Inefficient allocation of resources (2.5)

ii. Efficient allocation of resources (2.5)

iii. Unattainable point. (2.5)

iv. Scarcity ofresources.

1. Suppose that the demand and supply of liter of petrol are given in table 1 below:

Price (RM)	Quantity demanded (liter per day)	Quantity supplied (liter per day)
0.80	8	24
0.75	10	22
0.70	12	20
0.65	14	18
0.60	16	16
0.55	18	14

Table 1

1. What is the equilibriumprice and quantity of petrol? (2)
2. Use a graph paper to draw a demand curve and supply curve based on the table above. (8)
3. Now suppose that a political crisis in the Middle East lead to a decrease in the supply of petrol by 8 liter per day at every price. Show the change in the graph paper and show the new equilibrium position. (5)
4. What is the new equilibrium price of petrol?
5. What is the new equilibrium quantity of petrol?
6. In order t o help the consumer, the government imposes a price control of RM0.60 per liter: (5)
7. Give the name of this price control.
8. How much petrol will be demanded by consumer at this price?.
9. How much petrol will be offered for sale by suppliers?
10. How much petrol will actually be sold?
11. Calculate the excess quantity of petrol demanded.
12. An individual is given a voucher worth RM300 to spend in a Malay Restaurantwhich sell only Rendang and Satay. Dr. Mustafa of marginal utility for portions of both food are give in the table below.

No of portions	Total utility of Satay	Total utility of Rendang
1	100	160
2	190	310
3	270	450
4	340	580
5	400	700
6	450	810
7	490	910
8	520	1000
9	540	1080
10	550	1150

Please answer all question below:

1. If the price of a portion of Satay is RM15 and that of a portion of Rendang is RM30. Identify 4 possibilities of principlesto maximize satisfaction. (4 m)
2. Investigate the quantity of Satay and Rendang to maximize the satisfaction for Dr. Mustafa. (2 m)
3. Calculate the total marginal utility earn by Dr. Mustafa in equilibrium. (2 m)
4. What is the implication if, Dr. Mustafa spend RM105 its income. Justify your answer.

(2m)

(Total: 10 marks)