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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.
- For each price, determine the market demand and market supply of pen drive. (4 m)
- In one diagram, plot the market demand and the market supply curves for pen drive. (4 m)
- What is the equilibrium price and quantity of pen drive in the market? (4 m)
- At what prices does a shortage occur in the market and why? (4 m)
- 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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