MGT269

MICROECONOMICS

GROUP :
J4BA1172F

PREPARED BY :

NAMA ID
NUR ANISURAYA BINTI ABD RAHMAN 2019436368
NURUL SYAFIQAH BINTI AZRI 2019428786
NUROL SUHAILAWATIE BT ABD RAZAK 2019248312
NURUL IHSAN BINTI AHMAD BAKHARI 2019427212

PREPARED TO :
MADAM NORANITA BINTI ABDAMIA

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 TABLE OF CONTENT

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 1.0 INTRODUCTION

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 2.0 SUMMARY OF THE MICROECONOMIC ISSUE

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 3.0 DISCUSSION BASED ON THE MICROECONOMIC THEORY

In this report based on the article we choose Supply theory. This is because
Supply is one of the microecomic theory and it related to the issue in the article which
is supplier for Gardenia Bread increase due to the Movement Control Order (MCO).
Factory at full capacity and the factories of Gardenia Bakeries Sdn Bhd unable to
incease bread supply.

3.1 Definition of Supply

Supply is the quantity of goods or services that is offered for sale at a given price
and in a given period of time. In this issue, supply is under quantity of goods that is
offered for sale in a given time period. This is because we can see consumer is more
focus and like to buy Gardenia Bread rather than other Bread Company or factory of
bakeries. Consumer’s demand is high of their limit until Gardenia Bakeries Sdn Bhd
unable to increase bread supply.

3.2 Changes in Supply

The changes in supply are due to the factors other than its own price such as
price of other goods, cost of production, number of sellers, determinants of supply.
This is mean changes in supply not only can happen because of its own price but
also can happen in other factors. In this case or issue, we can clasify factors of
changes in demand is because cost of production and determinants of supply itself.
Gardenia Bakeries Sdn Bhd is already reached their maximum production threshold
due to the Movement control order (MCO).

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 Figure 1 : Example graph change in supply

Based on this figure, its under the supply theory and example graph changes in
supply. This graph shows when increase in supply, it will shift to the right and when
the supply is decrease, it will shift to the left.

3.3 Determinants of supply (non-price)

Determinants of supply show factors other than the price of the good itself that
influence supply. We choose cost of production because it related to production
where Gardenia Company not able to increase their supply of products in the market
during the Movement Control Order (MCO). This is because of consumer’s demand
is not under control and their factories have reached maximum threshold. Punic
buying among the consumers until they buy gardenia bread in large quantities for
their stock during the MCO. Cost of production is an increase in inputs costs, such as
higher wages, higher material costs, or higher interest rates will cause a firm to sell
less output (the supply curve shift to the left) since profits will be lower and vice
versa. In this issue, cost of production is increase and supply will decrease.

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 4.0 CONCLUSION

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