The terms supply and demand refer to the behavior of people as they interact with one another in competitive markets.(150 words each)

1. Briefly explain what constitutes a perfectly competitive market. (1 mark)
2. Briefly explain at least four factors that influence the quantity demanded in competitive markets. (2 marks)
3. Briefly explain at least four factors that influence market supply in competitive markets. (2 marks)
4. Briefly explain how taxes levied by the government can affect the outcome of a market. (1 mark)