QUESTION $3$

Table $1$ below shows the relationship between prices, quantity demanded and quantity supplies.

Table $1$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline Price $($RM$)$ & Quantity Demanded $($units$)$ & Quantity Supplied $($units$)\backslash \backslash$

$\backslash$hline $1$ & $45$ & $0\backslash \backslash$

$\backslash$hline $2$ & $35$ & $10\backslash \backslash$

$\backslash$hline $3$ & $25$ & $20\backslash \backslash$

$\backslash$hline $4$ & $15$ & $30\backslash \backslash$

$\backslash$hline $5$ & $5$ & $40\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$($a$)$ Draw the demand and supply curves based on table $1$ above.

$(2$ Marks$)$

$($b$)$ Assuming the price of substitutes good rise, the quantity demanded for the good will change by $20$ units for each price level. Show your answer using a graph. $(4$ Marks$)$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$c$\}$

Price $\backslash \backslash$

$($RM$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Quantity Demanded $\backslash \backslash$

$($units$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

quantity demanded $\backslash \backslash$

change by $20($units$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Quantity $\backslash \backslash$

Supplied $($units$)$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $1$ & $45$ & & $0\backslash \backslash$

$\backslash$hline $2$ & $35$ & & $10\backslash \backslash$

$\backslash$hline $3$ & $25$ & & $20\backslash \backslash$

$\backslash$hline $4$ & $15$ & & $30\backslash \backslash$

$\backslash$hline $5$ & $5$ & $40\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$($Total: $6$ Marks$)$