7# gt new microeconomics question!!!hope someone cn help me!!!thks

myway_89

Case 1 – Demand and Supply
Thursday September 17, 2009
Stick to rules, traders of controlled items told
JOHOR BARU: Traders applying for special permits to sell controlled items this Raya must abide by all regulations.
State Domestic Trade, Cooperative and Consumerism Ministry director Che Halim Ab Rahman said that among others, traders would have to use pink price tags on the controlled items and sell them below the price fixed by the Government.
“As of now, a total of 7,862 permits have been issued to traders nationwide for this festive season,” he told reporters after visiting the Taman Sri Tebrau market here yesterday.
Che Halim said traders could apply for these permits at any of the ministry’s offices, adding that mobile booths would also be set up at some of the country’s main markets to make it more convenient for them.
“During our rounds today, most of the traders did not complain about lack of supplies,” he said.
Che Halim also assured the public that there would be enough supply of meat and vegetables for the festive season.
Seventeen items including chicken, local beef, eggs, red chillies and garlic have been put on the price control list until Sept 27.
Stulang assemblymen Mok Chek Hau, who also visited the market, said traders were following the regulations set by the ministry.
“Some traders are even selling the items at prices lower than the ceiling price,” he said.
(Source: The Star Online > www.thestar.com.my)





Question:

1.        What would be the likely reasons for the ministry to sanction control on the items mentioned in the news?
2.        Discuss the possible factors that lead to the increase in the price of consumer goods.
3.        Do you think that such actions would curb the problem of unreasonable price increase by unscrupulous traders? Please state your reasons.
4.        Several months ago, the ministry intended to import chicken as an attempt to stabilize its price (Utusan Malaysia, 25th July 2009). How would this action affect the price of chicken? How would it affect local breeders?

[ 本帖最后由 myway_89 于 13-11-2009 08:59 PM 编辑 ]

TD2

怎么Microeconomics也是有Case Study了..
我不懂了解得对不对和是不是这样回答，我讲出我的看法供你参考．．

请允许我用英文解答：
1. This question is more likely to question you regarding about the actions of Government on the goods mentioned which is those Seventeen items including chicken, local beef, eggs, red chillies and garlic.
The reason why government would do this is because these goods is belongs to NECESSITIES (必需品), also known as Normal goods. Due to festive season, Hari Raya, sellers might increase the price for their profit-making purposes. So, government interfere in this matter and place legal limits on how high (price ceiling) or low (price floor)  a price may go. The purpose of doing this is to protect the public or consumer from suffering from the high price set by supplier/seller.

2. I think this question is asking you about Factors Affecting Movement Along The Demand/Supply Curve. The factor will increase the price of consumer goods would be the change in quantity demanded. The higher the quantity demanded will leads to the price of consumer goods to be increase. More consumers demanding those necessities good for the celebration will leads to High Demand then supplier at the same time will make profit by increasing the price.

3. I think this answer for this question is Yes, by putting those item into Price Control List will be able to curb the problem of unreasonable price increase by unscrupulous traders. Reason is because putting items into price control list means setting a Price Ceiling for these goods. Definition of Price Ceiling is setting the maximum legal price a seller may charge for a product or service. In a free, unregulated market system, market forces establish equilibrium price and quantity. However, government sometimes concludes that supply and demand will produce prices that are unfairly high for buyers or unfairly low for sellers. So government may place legal limits on how high (price ceiling) a price may go.

4. This question is a little tough. In my point of view, I think government import chicken will lower down the Price of the chicken and the Quantity for Demand & Support will increase as well. Why do I say this? You can try drawing a Demand Supply Graph. From there, you label DD1 and SS1 and PE(Price Equilibrium) and QE (Quantity Equilibrium). Now, you add ONE NEW Supply Line to the right and label it as SS2. Then draw the dotted line and you will realize price drop and quantity increase. The new PE and QE is INCREASED quantity and DECREASED price.

上述一切都是本人一些意见吧了，我自己也不知道对不对．希望能帮到你！

juz开心

  谢谢大大的答案

TD2

大大的答案？

myway_89

噢～～～老大谢了！

TD2

老大？
没有老大哦~
不用谢啦，互相帮个忙而已~

myway_89

可以再指教我一下的问题吗？？？



1.        Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent. What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software?



2.        In the above figure, if the price of good A falls from P0 to P1 and the demand for good B increases from D0 to D1, then goods A and B

3.        When the price of oil is $20 per barrel, the quantity of oil supplied is 74 million barrels per day. When the price of oil is $15 per barrel, the quantity of oil supplied is 71 million barrels per day. What is the elasticity of supply of oil? (Use the midpoint method.)

4.        If the price increases by 20 percent and the quantity supplied increases by 40 percent, what does the elasticity of supply equal?



5.        June makes holiday wreaths and sells them during the holiday season. The figure above shows her supply curve of wreaths per week. Use the midpoint method in this problem.
a)        Calculate the percentage change in quantity between points A and B.
b)        Calculate the percentage change in price between points A and B.
c)        Calculate the price elasticity of supply between points A and B.

6              When income increases from RM20,000 to RM30,000 the number of home delivered pizzas per year increases from 22 to 40. Hence the income elasticity of demand for home delivered pizza equals

[ 本帖最后由 myway_89 于 13-11-2009 08:53 PM 编辑 ]