Just a few quick questions.

1. What is a perfectly competitive market?

2. On a demand and supply graph, if a drought were to hit, how would it change the market for let's say lip balms? (what does that look like on a demand and supply graph)

3. If a severe drought hits, would I have to change how much a unit of lip balm is sold for? If so why?

4. If a severe drought hits, would I need to change how much lip balm I produce?