Price per bottle (RM)	Quantity demanded per household (bottles)	Quantity supplied per supplier (bottles)	Market Demand (bottles)	Market Supply (bottles)
3.00	35	300
4.00	30	350
5.00	25	400
6.00	15	450
7.00	10	600
8.00	0	750

1. Assuming there are 150 households and 5 suppliers in the district. Determine the market demand and market supply for each price level.

(6 marks)

1. Determine the equilibrium price and equilibrium quantity based on your answer in (a).

(2 marks)

1. If a minimum price is set by the government at RM6.50, will there be a shortage or surplus of herbal drink? Justify your answer.

(2 marks)

1. Calculate the price elasticity of demand for herbal drink, if the price increases from RM6 to RM7.

(3 marks)

1. Indicate whether the demand is elastic or inelastic based on your answer in (d).

(2 marks)