Answer to Question #70887 in Microeconomics for pei yun

Question

a)Briefly explain the impact of subsidies of the gas market in malaysia?
b) Discuss the factor that have driven the increasing domestic demand for gas

Answer 1

a) The imposing of subsidies of the gas market in Malaysia has impact on the demand for gas, because the prices for gas became lower.
b) The implementation of subsidies have driven the increasing domestic demand for gas, because subsidies paid by the government can increase demand.