# Essay in English

Topics: Supply and demand, Wage, Economic equilibrium Pages: 5 (848 words) Published: February 25, 2013
(CASE STUDY)
PB 102 – MICROECONOMICS

PREPARED TO:

REG. NO| NAME| PROGRAM|
14DPM12F2003| NURUL ATIKAH BINTI ABD MANAF| DPM1A|
14DPM12F2015| NURHIDAYAH BINTI ISMAIL| DPM1A|
14DPM12F2017| SITI AISHAH MD SALLEH| DPM1A|

LIST OF CONTENTS

TITLE| PAGE |
INTRODUCTION| 3|
CONTENT OF CASE STUDY / APPENDIX 1| 4|
APPENDIX 2| 8|
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INTRODUCTION
Demand Theory (DD)
* Demand is defined as the ability and willingness to buy specific quantities of goods in a given period of time at a particular price , ceteries paribus . Assumption – ceteries paribus or all other things remain constant . * Refers to how much (quantity) of a product or service is desired by buyers. * Quantity demanded : amount a consumer or group of consumers is willing and able to buy at a given price. Law Of Demand

When P Qdand PQd

Supply Theory (SS)
-Supply is the total quantities of a good that sellers are willing and able to sell at a alternative prices in a given time period , ceteries paribus .
-Represents how much the market can offer .
-Quantity supplied : amount a producer or group of producers is willing and able to sell at a given price .

Law Of Supply
When P Qs and P Qs
APPENDIX 1
STUDENTS / YOUTH
RM 250 book voucher
* When the goverment give a book voucher for students , the demand for books will increase. So that the demand curve will shift to the right from D0 to D1. The supply for the books will increase and the supply curve will shift to the right from S0 to S1. The equilibrium point will change from e0 to e1. So the equlibrium price constant and the equilibrium quantity increase from Q0 to Q1 .

PRICE
S0

S1

P0

D1

D0

Q1
Q0
QUANTITY

RM100 for all primary and secondary school
* When the goverment gaves RM100 for all primary and secondary students. The demand for the school stuff such as uniform , stationary and shoes will increase. So the demand curve will shift to the right from Do to D1. The supply for school stuff will increase too. The supply curve will shift to the right from S0 to S1. The equilibrium point will change from e0 to e1. The equilibrium price will constant P0 and the equilibrium quantity will increase from Q0 to Q1 .

PRICE
S0

S1

P0

D1

D0

Q1
Q0
QUANTITY

LOW INCOME / CIVIL SERVANTS
50 % discount on KTM fares for malaysians with income of RM3,000 or less * When the goverment gives 50% discount on KTM fares for malaysians with income of RM3,000 or less , the demand for the tickets will increase. So that the demand curve will shift to the right from D0 to D1. The supply for the public transportation will decrease , so that the supply curve will shift to the left from S0 t S1. The equilibrium point will change from e0 to e1. The equilibrium price will increase from P0 to P1. The equilibrium quantity will constant Q0.

S1
PRICE

S0

P1

P0
D1

D0

Q0
QUANTITY
EAST MALAYSIANS
50% discount on ferry charges for all passengers
-50% on ferry charges for all passengers. When 50% discount were given on ferry charges for all passengers , the demand for ticket of ferry will increase. So the demand curve will shift to the right from D0 to D1. The supply for the ferry will increase. So the supply curve will shift to the right from S0 to S1. The equilibrium point will change from e0 to e1. The equilibrium price will constant P0 and the equilibrium quantity will increase from Q0 to Q1.

PRICE
S0

S1

P0

D1

D0

Q1
Q0
QUANTITY

APPENDIX 2
The Advantage Of The Minimum Wage Rate Scheme
* To improve the...