KOLEJ PROFESIONAL MARA

ECO1043 BUSINESS ECONOMICS

SESSION 3/2021

WRITTEN ASSIGNMENT (15%)

CLO 2: Provide appropriate suggestions on concepts and issues related to the

current economic environment. (C4, PLO2)

INSTRUCTIONS TO STUDENTS:

1. This written assignment contributes 15% to your continuous assessment.

2. This is a group work. You are required to form maximum of four (4) members in a
group.

3. Include graphs and relevant data in your written assignment. Acknowledge your
sources.

4. Please consult your respective lecturer on the topic given.

5. Week 5-6 is allocated as your consultation week.

6. Avoid plagiarism.

7. Submit a hardcopy of this written assignment with a cover page and a list of
references on 24/12/2021 (Week 6) before 12.00 pm.

8. Font: Tahoma 12
Spacing: 1.5
Footer: page number (centre, Tahoma 10)

1|Page
ARTICLE:

Price control until May 20

The Star By MARTIN CARVALHO

Tuesday, 20 Apr 2021

PETALING JAYA: With Hari Raya approaching and prices of certain essential food
items soaring, the government has stepped in with a price control list that will be
enforced over a longer period.

Instead of the usual 14-day enforcement, price controls for this Hari Raya will last
for 30 days from April 21 to May 20.

Twelve food items from the four main categories of beef, chicken, eggs and seafood
will be put under price control.

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi,
who disclosed this yesterday, said demand for the food items was expected to be
high although celebrations would be moderate because of the Covid-19 pandemic.

The price control list would be expanded to cover more items before Hari Raya, with
about 20 more to be included, he said.

“Demand is expected to rise before and during Hari Raya,” he said at a press
conference to announce the ceiling price list.

The items include chicken eggs, live chickens, standard chicken (cleaned with head,
feet and offal) and super chicken (cleaned without head, feet and offal).

Under the seafood category, mackerel (kembung), island mackerel (mambung), scad
(selar) and mackerel tuna (tongkol) are the items listed.

Alexander said local and imported beef, including buffalo meat, was also put under
the price control, excluding Sarawak.

He said the ministry decided to act due to complaints of soaring chicken prices.

“I’m aware of the complaints, including from wholesalers and sundry shop operators
who revealed they were paying high prices for chicken supplied directly from farms.

2|Page
“We looked into these complaints and found them to be factual,” he said, adding
that prices of imported livestock feed had gone up.

Alexander said a meeting was held recently with relevant stakeholders to ensure that
chicken prices would remain below RM8 per kg during the price control period.

He said traders who hiked up prices of items under the control list could face fines between
RM10,000 and RM250,000 or three years’ jail.

Carvalho, M. (2021, April Tuesday). Price control until May 20. The Star.

https://www.thestar.com.my/news/nation/2021/04/20/price-control-until-may-20

Questions:

1. Compare and contrast between ceiling price and floor price.

2. What is the appropriate price control for the situation mentioned in the article
above? Give reason/s for your answer.

3. Why is the need for the government to enforce the intervention longer this year as
compared to last year?

4. Illustrate and explain your answer for Question 2 by finding the relevant price
control for one of the food items mentioned in the article. You may want to find
the price of your selected food item that existed at the time of the article being
published for the purpose of illustration.

5. Oher than the food items mentioned in the article, what are other items that were
under the government control list? Provide at least five items that would be
included in the list.

6. Discuss the pros and cons of government intervention in the market as mentioned
in the article. Consider the effects to both consumers and producers.

7. Suggest how the problems mentioned in the article can be resolved without having
the government to intervene in the market. What actions that can be taken by
both consumers and producers.

~END OF QUESTIONS~

3|Page
REFERENCES FOR WRITTEN ASSIGNMENT

1. https://youtu.be/NWje0rUThC8
2. https://youtu.be/9gwTH4Yme8I
3. https://youtu.be/FRF3We8Zmz4
4. https://youtu.be/1EzY4Vl460U
5. https://youtu.be/XgBPAucs-W4
6. https://youtu.be/wbU6TdrnqmU
7. https://www.thestar.com.my/news/nation/2021/04/20/price-control-until-may-20 (sourced: 21
August 2021)
8. Sarimah Aman Shah, Abd. Rashid Mohd Ali, & A. Manaf, N. (2018). Principles of Economics (Third
ed.). Oxford Fajar.
9. Nabila Ahmad, Zulkhairi Nisa, Irlisuhayu Mohd Ramli, & Rosmaiza Abdul Ghani (2022) Essential of
Economics, 1st Ed. McGraw Hill.

4|Page