Question
Mr. Kamal wants to buy three units of inverter air conditioners with 2.0hp for her new house. He received quotations from four suppliers. Each supplier
Mr. Kamal wants to buy three units of inverter air conditioners with 2.0hp for her new house. He received quotations from four suppliers. Each supplier is willing to supply and install the air conditioner if Mr.Kamal can pay exceeds their quotation price (opportunity cost) as shown in Table 1. Table 1: List of pump suppliers Contractor Quotation Price (RM) Berkat Sdn Bhd 900.00 Timor Sdn Bhd 800.00 ABS Enterprise 600.00 Kurnia Enterprise 500.00 a. Explain the consequences if Mr. Kamal choose the quotation price below RM 600.00. b. By using the data in Table 1, plot a supply curve graph to measure the supplier's (producer) surplus and with the aid of diagram discuss the result of the supply curve graph that you have plotted.
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