a)Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly competitive industry. Draw the industry supply and demand curves and the demand curve for a single wheat farmer. Explain why the wheat farmer is a price tracker.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section8.5: Long-run Supply Curves Under Perfect Competition
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a)Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly
competitive
industry. Draw the industry supply and demand curves and the demand curve for a
single wheat farmer. Explain why the wheat farmer is a price tracker.
b) In which form of market structure would price be the key factor when competing? Explain
why?

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