i. Determine the equilibrium quantity and price in the above market,       ii. Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
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b. The daily market demand and supply for chicken in Kuala Lumpur is given by:

= 16,000 – 1,000P

=   2,000 + 1,000P

The quantity and price are measured in tonnes and RM, respectively.

      i. Determine the equilibrium quantity and price in the above market,

      ii. Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.

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