Economy

Question 1

Supply is defined as the ability and willingness to sell or produce a particular product and service in a given period of time at a particular price, ceteris paribus. The law of supply states that the higher the price of a good, the higher is the quantity supplied for that good and vice versa, ceteris paribus.

Price

SS

O

DD

Quantity

The market price of plantation labours in Sarawak is determined by the intersection of both the DD (demand curve) and SS (supply curve). By plotting DD and SS curve on the same set of axis, it is possible to graphically see show how the equilibrium price and quantity are determined when there is no tendency for price or quantity to change.

Question 2

Price

SS2

P2 SS1

P1

DD

Quantity

The diagram shows the decreasing of plantation labours in Sarawak move from SS1 to SS2 whereby the demand is remain constant. The key reasons is the big increase in the oil palm planted areas in Indonesia which open...