INSTRUCTIONS:

Write answer to each of the following questions in not more than 200 words.

1. What is a competitive market? Briefly describe a type of market that is not perfectly competitive.
2. What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward?
3. What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward?
4. Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium.
5. Describe the role of prices in market economies.