Explain the distinction between “change in quantity supplied’ and “change in supply”. Use diagram.

(Diagram SKIPPED)

Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.

Explain the conditions of consumer’s equilibrium using indifference curve analysis.

Explain the implications of the following in a perfectly competitive market:

(a)Large number of buyers

(b)Freedom of entry and exit to firms

OR

Explain the implications of the following in an oligopoly market:

(a)Inter-dependence between firms

(b)Non-price competition

Define stocks.