The table below provide information about demand and supply of a new formulated banana milk in Kepong. Price per Market

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The Table Below Provide Information About Demand And Supply Of A New Formulated Banana Milk In Kepong Price Per Market 1 (29.69 KiB) Viewed 33 times

The table below provide information about demand and supply of a new formulated banana milk in Kepong. Price per Market Market bottle (RM) Quantity demanded per household (bottles) Quantity supplied per supplier (bottles) Demand Supply (bottles) (bottles) 1.00 30 200 2.00 25 350 3.00 20 400 4.00 15 450 5.00 10 500 6.00 5 650 a) Assuming there are 150 households and 5 suppliers in the district. Determine the market demand and market supply for each price level. (6 marks) b) Determine the equilibrium price and equilibrium quantity based on your answer in (a). (2 marks) C) If a minimum price is set by the government at RM6, will there be a shortage or surplus of banana milk? Why? (2 marks) d) Calculate the price elasticity of demand for banana milk, if the price increases from RM4 to RM5. (3marks) e) Explain whether the demand is elastic or inelastic based on your answer in (d).