1.00
300
350
Table 1: Demand and Supply Schedule
1.10
1.00
a) Using Table 1 given above, plot the demand and supply curve on the graph paper. Label the
axes and indicates for each axis the units being used to measure price and quantity.
b) Using the algebra analysis, find the equilibrium price and quantity. All workings must be
clearly shown.
250
200
150
If the government sets the maximum market price at RM1.00, will this create a shortage or
surplus in the economy? Compute the size of the shortage or surplus (whichever is relevant).
OL
d) Compute the size of the producer or consumer surplus when the market is in equilibrium.