Consider a market with two firms. The following table shows the supply schedules of two firms: the SS₁ column gives supply schedule of firm 1 and SS₂ column gives supply schedule of firm 2. Compute the market supply schedule.

Price (Rs)	SS1(in Units)	SS2 (in Units)
0	0	0
1	0	0
2	0	0
3	1	1
4	2	2
5	3	3
6	4	4

3

(a)

Consider a market with two firms. In the following table, columns labelled as SS₁ and SS₂ give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.

Price (Rs)	SS1(Kg)	SS2 (Kg)
0	0	0
1	0	0
2	0	0
3	1	0
4	2	0.5
5	3	1
6	4	1.5
7	5	2
8	6	2.5

3

(a)

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.

Price (Rs)	SS1(Units)
0	0
1	0
2	2
3	4
4	6
5	8
6	10
7	12
8	14

3

(a)

How does technological progress affect the supply curve of a firm?

3

(a)

How does the imposition of a unit tax affect the supply curve of a firm?

3

(a)

How does an increase in price of an input affect the supply curve of a firm?

3

(a)

How does an increase in the number of firms in a market affect the market supply curve?

3

(a)

What does the price elasticity of supply mean? How do we measure it?

3

(a)

What is the supply curve of a firm in the short run?

3

(a)

What is the supply curve of a firm in the Long run?

3

(a)

At the market price of Rs.10, a firm supplies 4 units of output. The market price increases to Rs.30. The price elasticity of the firm's supply is 1.25. What quantity will the firm supply at the new price?

3

(a)

The market price of a good changes from Rs.5 to Rs.20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm's supply curve is 0.5. Find the initial and final output levels of the firm.

3

(a)

A firm earns a revenue of Rs.50 when the market price of a good is Rs.10. The market price increases to Rs.15 and the firm now earns a revenue of Rs.150. What is the price elasticity of the firm's supply curve?

3

(a)