QUESTION 1 (25 MARKS) (a) Kamal inherited a piece of land and plans to plant some food crops like rice, maize, and wheat. His decision regarding which of the crops to plant more particularly depended on the price of each crop in the markets. In other words, if the price of rice is higher than the price of maize and wheat, he will plant more rice. He plans to hire some workers to help him so that productions is at an optimum level. He is willing to offer higher wages to experienced and skillful workers to help out on the land. Based on the scenario above, highlight and explain the effects of scarcity. (6 marks) (b) Susie received a cash voucher of RM2000 as a birthday gift from her parents. She plans to use the voucher to purchase a new smartphone. There are many different brands of smartphone in the market such as Apple, Samsung, Huawei, etc. Identify and discuss TWO (2) factors that influence Susie's decision on her demand for smartphone. (4 marks) (c) Cross elasticity of demand is used to measure the responsiveness in quantity demanded of one good to changes in the price of another good. If the coefficient value of the cross elasticity of demand is larger than 0, this indicates a positive relation between the price of one good and the quantity demanded of another good. Use an appropriate example, identify and illustrate the effect of the price of one good and the quantity demanded of another good with a positive coefficient of cross elasticity of demand. (5 marks) (d) 15 Price (dollars 50 100 150 Quantity Based on the diagram above, discuss TWO (2) possible price controls that can be implemented by the government to alter the equilibrium condition in the market. (10 marks)