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1) Table shows the quantities of paddy demanded and supplied at various prices:

Price per ton Quantity Quantity Surplus /

(RM) Demanded Supplied Shortage

(ton) (ton) (ton)

80 6,000 12,000 i.

90 8,000 11,000 ii.

100 10,000 10,000 iii.

110 12,000 9,000 iv.

a. Complete the table by specifying whether there will be a shortage or surplus and

the size of it. (10 marks)

i. Quantity Supplied Quantiity Demanded

= (12,000 6,000) ton

= 6,000 ton

Subtracting Quantity Supplied from Quantity Demanded, we have a surplus of

6,000 ton. So, the market price should be falls.

ii. Quantity Supplied Quantiity Demanded

= (11,000 8,000) ton

= 3,000 ton

Subtracting Quantity Supplied from Quantity Demanded, we have a surplus of

3,000 ton. Thus, the market price should be falls.

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iii. Quantity Supplied Quantiity Demanded

= (10,000 10,000) ton

= 0 ton

Subtracting Quantity Supplied from Quantity Demanded, we have a

equilibrium of 0 ton. Hence, the market price should be constant.

iv. Quantity Supplied Quantiity Demanded

= (9,000 12,000) ton

= 3,000 ton

Subtracting Quantity Supplied from Quantity Demanded, we have a shortage

of 3,000 ton. So, the market price should be rises.