a) State the economic circumstances under which a perfectly competitive market may tribe.
b) In what ways does a perfect market differ from a monopoly, oligopoly and monopolistic competition?
a) Distinguish between supply, demand and equilibrium price.
b) Explain what is meant by elasticity of supply and state the factors that determine the supply of a good in the market.
c) The table below shows the demand and supply schedules for a product:
PRICE (KShs. per kg) DEMAND (kg) SUPPLY (kg)
10 100 20
20 85 36
30 70 53
40 55 70
50 40 87
60 25 103
70 10 120
Draw the demand and supply curves and draw the equilibrium price and quantity.