State and explain the law illustrated in the above table.

(ii) Outline two assumptions underlying this law. (25)

(b) (i) State the 'Law of Supply', and illustrate with a labelled diagram.

(ii) Explain how technical progress affects the supply curve.

(iii) Outline, with the aid of labelled diagrams, two other factors that would cause a shift in the

supply curve. (30)

(c) Macklemore announces a concert in Ireland at a venue with a maximum capacity of 80,000 people.

The tickets are priced at 65 and the concert sells out in hours.

(i) Draw one labelled diagram, showing a market demand curve and a market supply curve that

would be consistent with the above information. Explain your answer.

(ii) Explain, using the concept of Consumer Surplus, why it might make sense for the concert

promoters to have different ticket prices (e.g. VIP section, seating section and standing

section) for this concert.

(20)

[75 marks]

2. (a) (i) State and explain three assumptions underlying the theory of imperfect competition.

(ii) Explain why a firm's demand curve under imperfect competition differs from a firm's

demand curve under perfect competition.

(25)

(b) (i) Explain, with the aid of a diagram, the long run equilibrium of a firm in imperfect

competition.

(ii) With reference to your diagram in (b) (i) explain why the firm is not making socially

efficient use of scarce resources.

(30)

(c) "A few large retailers (e.g. Tesco, SuperValu, Dunnes Stores, Aldi, Lidl) dominate the Irish

grocery market at present."

Suggest a market structure which most closely reflects this situation. Explain your answer.