Academic Session 2023

MAY 2023 Term

FINAL ASSESSMENT

BBM102/03 Microeconomics

INSTRUCTIONS TO CANDIDATES:

1. This is the final assessment of the course.

2. This assessment consists of FOUR (4) questions. Answer ALL questions.

3. You are allowed a maximum of one (1) attempt to submit your assignment.

4. The assignment will be made available from 3 July 2023, Monday (00:00) until
24 July 2023, Monday (23:59).

5. Completed assignment must be submitted by 24 July 2023, Monday (23:59).

Copyright © 2023 WOU

Answer ALL questions.

Question 1

Explain the concepts of scarcity, choices and opportunity costs based on your own
experiences when you signed up for a degree programme at Wawasan Open
University,
[20 marks]

Question 2

Let’s just say that price of product X is RM5 and the quantity bought is 100 units.
Assume that the price of product Y increases from RM3 to RM5. The quantity bought
of product X decreases to 80 units.

Calculate the cross elasticity of demand between products X and Y. Determine the
relationship between the two products.
[25 marks]

Question 3

Explain FIVE (5) differences between price ceiling and price floor.
[25 marks]

Question 4

Using a suitable diagram, explain how a long-run firm in prefect competition achieves
equilibrium. Your explanation should also include the profit level of the firm in the
long-run.
[30 marks]

End of Final Assessment