QUESTION 1 (25 Marks)

CASE STUDY : DEMAND FOR CHILLIES AND GOVERNMENT PRICE CONTROL Consumers may opt for imported vegetables to avoid paying inflated price for local greens, but there is no substitute for that favourite ingredient in Malaysia food - the red chillies. Despite the record high of RM15.00 a kg. at a Pudu Wet market on Monday, demand for red chillies has not abated. RM15.00 a kilo is twice the normal price of red chillies but customers is not complaining because red chillies are scarce an it still not a high as RM15.00 a kg. Another vegetables sellers said some customers who could not get red chillies would settle for the small Thai chillies that cost RM5.00 per kg. Most customers has claimed that certain stall operators at the Pudu market "hid" their red chillies and only sold them to regular customers. At the Selayang wholesaler market, vendors cited the current wet weather and higher transportation costs as reasons behind the current vegetable price rise. There, red chillies were sold at between RM10 and RM12.00 a kilo, up from RM8 to RM9 last week. So, Penang Federation of Vegetable Sellers Association advisor urged government agencies to import vegetables to ease the shortage and price control mechanism to protect the consumer's welfare. Source : The Star, Malaysia, 12 October 2023

Answer the following questions based on case study entitled "Demand for Chilles and Government Price Control" a)Contrast between the concept of change in quantity demanded and change in demand for red chillies. (10 marks) With an a appropriate diagram, explain the government of price control mechanism for red Chillies in Malaysia. (15 marks