1.Briefly explain with the aid of a graph whether the given statement is True or False. " Increased supply leads to a lower price, which in turn increases demand."

2.Briefly explain using a graph whether a given statement is true or false. "in the short run, if the marginal product is at its maximum, marginal cost is at its minimum.

3.Briefly explain using a graph whether a given statement is true or false. "If firms in a monopolistically competitive industry are earning economic profits, new firms will enter the industry. Eventually, the representative firm will find that its demand curve has shifted to the left until it is just tangent to its average cost curve and it is earning zero profit. Because firms are earning zero profit at that point, some firms will leave the industry, and the representative firm will find that its demand curve will shift to the right. In long-run equilibrium, price will be above average total cost and each firm will make economic profit."

4.Briefly explain whether the given statement is true or false. 'An expansionary fiscal policy involves an increase in government purchases or an increase in taxes. A contractionary fiscal policy involves a decrease in government purchases or a decrease in taxes.'