Chapter 3 - Market Supply and Demand What to produce? For...

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Market Supply and Demand - What to produce? - For whom? - How to produce? - What price? Most economies are mixed Why do we have this mix? o Too important to leave to people o Reasons of fairness, equity, etc. We will look at market goods/services, not government goods/services Adam Smith – founder of Economics – charge with what it costs to produce an  item Stanley Jevons – first to show how it is the interaction between supply and  demand that form the market price Market     : consists of all potential buyers and sellers of that good Supply Curve     : a curve or schedule showing the quantity of a good that sellers  wish to sell at each price ALWAYS AND ONLY PUT PRICE ON Y-AXIS     ALWAYS AND ONLY PUT QUANTITY ON X-AXIS     Supply Curve     : price to which sellers are satisfied Properties of the Supply Curve  
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Chapter 3 - Market Supply and Demand What to produce? For...

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