rice Ceiling of Low-Cost Homes The Malaysian government has implemented a price ceiling on low-cost homes starting from the year 2010. The implementation of this price ceiling is aimed to ensure that people from the lower income group have one of the necessities, which is shelter. The government has set the price ceiling of low-income houses at RM42,000 in Peninsular Malaysia and RM50,400 in Sabah and Sarawak. Furthermore, in conjunction with the 10th Malaysia plan, the government has planned to develop more houses at an affordable price, involving private developers. The target is to have 161,000 affordable homes, of which private developers would build 83,000 units while the rest would be built by the government.Due to the implementation of this price ceiling, the legal maximum price of low-income houses set by the government is lower than the market equilibrium price. This is done in order to protect the interest of consumers by preventing the producers from charging prices that are unaffordable by low-income consumers Question 1 A study by the Housing Ministry had shown that in 2019, price of low-cost house will be increase. Using a diagram, explain the impact of this factor and the impact of an increased price on the low-cost house market
The Malaysian government has implemented a price ceiling on low-cost homes starting from the year 2010. The implementation of this price ceiling is aimed to ensure that people from the lower income group have one of the necessities, which is shelter. The government has set the price ceiling of low-income houses at RM42,000 in Peninsular Malaysia and RM50,400 in Sabah and Sarawak. Furthermore, in conjunction with the 10th Malaysia plan, the government has planned to develop more houses at an affordable price, involving private developers. The target is to have 161,000 affordable homes, of which private developers would build 83,000 units while the rest would be built by the government.Due to the implementation of this price ceiling, the legal maximum price of low-income houses set by the government is lower than the
Question 1
A study by the Housing Ministry had shown that in 2019, price of low-cost house will be increase. Using a diagram, explain the impact of this factor and the impact of an increased price on the low-cost house market
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