Question
Mr. Adam wishes to purchase three units of 2.0 hp inverter air conditioners for his new home. He received quotations from four suppliers. Each supplier
Mr. Adam wishes to purchase three units of 2.0 hp inverter air conditioners for his new home. He received quotations from four suppliers. Each supplier is willing to supply and install the air conditioners if Mr. Adam pay a price that exceeds their quotation price (opportunity cost) as shown in the table. Table: List of air conditioner suppliers
Contractor | Quotation Price (RM) |
BSB | 900.00 |
TSB | 800.00 |
ABSE | 600.00 |
KE | 500.00 |
(a) Explain the consequences if Mr. Adam choose the quotation price below RM 600.00 (5 MARKS)
(b) By using the data in table, plot a supply curve graph to measure the suppliers
(producer) surplus and with the aid of diagram discuss the result of the supply curve graph that you have plotted. (15 MARKS)
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