The concept of Equilibrium Price

  Question 1 a. Explain the concept of Equilibrium Price in a perfectly Competitive Market and how it is determined? [2 Marks] b. Calculate the percentage change in equilibrium price if percentage change in quantity demanded is 25%. Price Elasticity of Demand is 1.35 and Price Elasticity of Supply is 1.15. [1 Mark] Question 2 Calculate the Total Variable Cost, Average Fixed Cost, Average Variable Cost, Average total Cost and Marginal Cost in the table given below (All Cost are given in USD). [2 Marks]   Labor (No of workers)   Output (Number of units)   Total Fixed Cost   Total Variable Cost   Total Cost   Average Fixed Cost   Average Variable Cost   Average total Cost   MC   0   0   150