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Business
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| Number of pages / Number of words: |
3 / 717 |
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(quantity demanded exceeds quantity supplied)
For example, shortage of supply may occur when price ceiling being fixed by the Ministry for the chicken during the festive session. The actual equilibrium price of chicken was at RM 4.00 but when the ministry of trade fixed it at RM 2.00, the demand will shoot up from usual of 8,000 kg per day to 12,000 kg per day...
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The actual equilibrium price of chicken was at RM 4.00 but when the ministry of trade fixed it at RM 2.00, the demand will shoot up from usual of 8,000 kg per day to 12,000 kg per day. The ceiling price fixed by the Ministry is at RM 2.00 is said to be binding now.
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4. Income elasticity of demand is measuring the changes in the quantity demanded on one good as a result of a change in income...
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