Define supply.
Supply is a relation that shows the quantities that sellers are willing to make available for sale at alternative prices during a given time period, while all other things remaining the same.
8 units of a good are demanded at a price of Rs. 7 per unit. Price elasticity of demand is (-)1. How many units will be demanded if the price rises to Rs. 8 per unit? Use expenditure approach of price elasticity of demand to answer this question.
Explain the implication of 'freedom of entry and exit to the firms' under perfect competition.
Draw average revenue and marginal revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain.
