Question 1 (a) Draw a demand and supply graph for the global market for crude oil. [5 marks] (b) Explain the effects of the Russian-Ukraine war on market price and quantity of crude oil. [5 marks] (c) Using an appropriate demand-supply diagram, discuss how global crude oil prices might affect the market for vegetables in Malaysia. [5 marks] (d) To protect consumers from fluctuating prices of vegetables, the government considers price control policies. Provide an example of a useful price control policy that can prevent prices from rising further. [5 marks] (e) Explain the effects of this price control policy on the market? [5 marks] Question 2 A factorv sunervisor farees the followinn tahle: (a) The 5th and 6(t) columns of the table is deliberately left empty. Calculate the average cost associated with each level of production and complete the 5th column of the above table (14 marks) (b) Calculate the profits associated with each level of production, and complete the 6th column of the table (21 marks) (c) Identify which production level maximises profits (7 marks). (d) Explain the type of market structure that this manufacturer might be operating in (Hint: prices are the same despite changing production levels) (3 marks). (e) Elaborate the possible outcome that can happen in the long-run if this manufacturer continues making profits (Hint: explain the adjustments taking place in the market) (12 marks) (f) Suppose that this manufacturer discovers a new technology that reduces labour cost significantly. We now have new information in the table below: Calculate the new average cost and total profit and complete the table ( 10 marks) (g) Sketch the new Average Cost function from the table and comment on the graph (3 marks) (h) If this new situation persists, explain what might happen to the industry in future? (2 marks) END OF QUESTION PAPER