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 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)

Under what conditions, a producer would like to supply less at a given price?

3

(a)

Explain how changes in prices of inputs influence the supply of a product.

3

(a)

Explain effect of 'change in prices' of other products on supply of a given product.

3

(a)

If price of a commodity falls from Rs.50 per unit to Rs.45 per unit, its supply falls from 1000 units to 800 units. find out its elasticity of supply.

3

(a)

The price of a commodity is Rs.12 per unit and its quantity supplied is 500 units. When its price rises to Rs.15 per unit, its quantity supplied is 500 units. When its price rises to Rs.15 per unit, its quantity supplied rises to 650 units. Calculate its price elasticity of supply elastic?.

3

(a)

When price of a commodity falls by 50%, the quantity supplied decreases by 100%. Find out its price elasticity of supply

3

(a)

When the price of a good falls from Rs.10 per unit to Rs.8 per unit, its supply falls by 25 units from 125 units. Calculate elasticity of supply (ES)by percentage method

3

(a)

The price of a commodity rises from Rs.5 per unit to Rs.6 per unit. Consequently, its supply increases by 20%. Comment on PES.

3

(a)

PES for commodities A and B is known to be 1 and 2 respectively. If price of A falls by 10 % and that of B rises by 10%, then what will be percentage change in supply in both the cases.

3

(a)

The supply schedule of a commodity changes as follows:

Price per unit(Rs)	A Quantity supplied initially(units per period)	B Quantity Supplied after (units per period)
1	20	0
2	40	20
3	60	40
4	80	60
5	100	80

(a) Calculate elasticity of supply when price rises from Rs.2 to Rs.3, both the cases A and B.
(b) Why do supply elasticity differ in two cases even though absolute change in quantity supplied is 20 units in both the cases?

3

(a)