Question 1 (Include all the possibilities of changes in the market)

Draw supply and demand diagrams to illustrate sequential changes in the domestic market

for Hainanese chicken rice in Singapore. Explain how the impact caused changes in the

market and how the market adjusted to a new equilibrium price and quantity after the

change, using the diagram:

a. Many people rushed to buy the dish before the ban was imposed.

b. The ban was officially imposed on 1st June 2022 and many people (both vendors and

consumers) believe the taste of Hainanese chicken rice will not be good if they use

frozen chicken.

_{Hainanese chicken rice is a dish of poached chicken and seasoned rice, served with chilli sauce and usually with cucumber garnishes}

c. After the ban, the Singaporean government has managed to source additional frozen

chicken supply from Indonesia, Thailand and Australia. Vendors have also adjusted

the recipe to account for the texture of frozen chickens.

Question 2

a. How does the price elasticity of supply change as an immediate result of the ban on

chicken export from Malaysia (in Question 1b)? Justify your answer. If there is a

change in price elasticity of supply, how does this affect the supply curve you have

drawn in Question 1b.

b. How does the cross-price elasticity of demand for chicken alternative dishes2 with

regard to the price of Hainanese chicken rice change?