ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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When the Covid-19 pandemic hits, chicken sellers are likely to raise chicken
prices due to rising costs. The government had to act by setting a ceiling
for the supply of chicken in the market. The original price of chicken is RM6
per kilo. At that time, it is assumed that the equilibrium quantity is 1000
chickens. But the government has set the ceiling price at RM8 only. Draw and
briefly explain a curve that illustrates the situation where ceiling pricing takes
place in the sale of chicken in the market.
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