15 Questions
What is the law of demand?
The quantity demanded for sugar decreases because of the raise in the price of sugar.
What is the law of supply?
The quantity supplied for sugar increases due to the raise in the price of sugar.
What is price elasticity of demand?
A measure of responsiveness showing that changes in price have a significant effect on the quantity demanded.
How does the law of supply relate to the price of sugar?
The quantity supplied for sugar increases when the price of sugar increases, to cover the marginal cost of production.
What does an upwards supply curve indicate?
An increase in the quantity supplied as the price increases.
What is the purpose of the Malaysia government's sugar subsidy?
To encourage sugar manufacturers to produce more and reduce the cost of production
How does the distribution of sugar to wholesalers and retailers help resolve shortage issues?
By ensuring a fair distribution of sugar across different regions
What is the purpose of implementing a price ceiling for sugar by the Malaysia Government?
To control sellers from setting unreasonably high prices for sugar
How does the strong barrier of entry for new sugar manufacturers affect the market?
It protects existing manufacturers from competition and limits market entry
What is the goal of Malaysia's policy regarding sugar supply and distribution?
To ensure equitable access to sugar in all regions and prevent shortages
What role can the government play in encouraging local production of sugar?
Providing financial incentives like subsidies to local farmers
How can the government support farmers in enhancing agricultural techniques for sugar production?
Investing in extensive research and development programs
What is one of the measures the government can adopt to bolster domestic production capabilities?
Providing access to affordable farming equipment for farmers
How can the government ensure a reliable outlet for farmers' produce?
Facilitating easier access to markets for the farmers
What is the main purpose of the government's initiatives to support local production of sugar?
To reduce the nation's dependency on imported sugar
Test your knowledge of macroeconomic theory, microeconomics theory of supply, price elasticity, and the law of demand and supply. Explore concepts such as demand, price elasticity, and the relationship between consumer behavior and market prices.
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