a.On a graph paper, plot the demand (D) and supply (S) curves for fresh chicken in

Perlis.

b.Based on your graph, determine the equilibrium price and quantity.

Pe =_______________Qe = __________________

c.What is the legal price for chicken if government set the price at RM8.00? How much

shortage / surplus in the market?

d.On the separate diagram, show and state the new equilibrium price and quantity if

there is an increase of subsidyto supplier of chicken in Perlis.

e. Describe Law of Demand and Law of Supply.

The following table shows the demand and supply schedules for fresh chicken in Perlis. Price ( RM ) Quantity Supplied ( kg ) Quantity Demanded ( kg ) 10.00 500 100 8.00 400 200 6.00 300 300 4.00 200 400 2.00 100 500 Table 1