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The following table shows the demand and supply schedules of pen drive for a month: Price (RM) Quantity demanded (units) Buyers Market Quantity supplied (units)

The following table shows the demand and supply schedules of pen drive for a month:

Price (RM)

Quantity demanded (units)

Buyers Market

Quantity supplied (units)

Sellers Market

Individual Demand

Market Demand

Firm Supply

Market Supply

20

40

60

25

36

80

30

30

100

35

24

110

40

20

120

45

14

136

There are 50 buyers and 15 sellers in the pen drive market.

  1. For each price, determine the market demand and market supply of pen drive. (4 m)

  1. In one diagram, plot the market demand and the market supply curves for pen drive. (4 m)

  1. What is the equilibrium price and quantity of pen drive in the market? (4 m)

  1. At what prices does a shortage occur in the market and why? (4 m)

  1. If the government fixed the price at RM25, what type of price control is this? Is there a shortage or surplus and by how much? (4 m)

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