1. a. ) How do choices end up determining what, how, and for whom goods and services are produced? Graphically explain efficient, inefficient, attainable and unattainable points in PPF.

1.b.) Define difference types of elasticity. On Tuesday, price and quantity demand are Tk 7 and 120 units respectively. Ten days later, price and quantity demand are Tk 6 and 150 units respectively. What is the price elasticity of demand?

2. a. ) Which factor that influences change in buying plan, other than price of good? Find out market equilibrium price and quantity from the demand function: QD = 15-4p and supply function: QS= - 1+ 6p. Show it graphically

2 b. ) Identify what happens to equilibrium price and quantity in each of the following

cases:

a. Demand rises, and supply is constant

b. Supply rises and demand is constant

c. Decrease in demand and increase in supply

d. Decrease in both demand and supply

e. Increase in demand and decrease in supply

3 a.) Define perfect competition. Does a firm under perfect competition always make supernormal profit? Explain your answer with appropriate diagrams.

3 b.) Why does monopoly arise? How does monopoly make profit and loss? Graphically explain.