QUESTION 1 (a) Table shows the quantity demanded and quantity supplied for chicken in Bandar Damai Perdana: Price RM/kg Quantity supplied of chicken Quantity demand of chicken (kilograms) (kilograms) 6.50 1400 2600 7.00 1600 2400 7.50 1800 2200 8.00 2000 2000 8.50 2200 1800 9.00 2400 1600 9.50 2600 1400 i) Define law of supply. (2marks) ii) Determine the equilibrium price and quantity. (I marks) Hii) Using a diagram explain the effects on market equilibrium when prices of chicken in some areas dropped and stocks were slashed after and outbreak of bird flu in Selangor. (3marks) iv) Explain two (2) determine of supply. (4marks) (b) Consider the following demand and supply relationship in the market of golf balls: On -90-2P - 2T Qs = -9 + 5P - 2.5R Where On and Qs represent the quantities demanded and supplied respectively and P is the price. T is the price of the titanium, a metal used to make a golf clubs, and R is the price of rubber. i) If R = 2 and T = 10, calculate the equilibrium price and quantity of golf balls. (3marks) if) At the equilibrium values, calculate the price elasticity of demand and the price elasticity of supply. (3marks) ili) At the equilibrium values, calculate the cross-price elasticity of demand for golf balls with respect to the price of titanium. (2marks) iv) Explain the sign of this elasticity whether golf balls and titanium are substitutes or compliments. (2marks) QUESTION 2 a) Classical Economic Theories And Its Impact On Society in Malaysia. (15 marks) b) Explain the concept of 'Demand Curve: The Choices And Behaviors Of Yourself As Buyers'. (15 marks)