ECON 200 - Chapter 4 Notes Markets A market is the process...

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Chapter 4 Notes : Markets A market is the process of buyers and sellers exchanging goods services. Supermarkets, the NYSE, drug stores, roadside stands, garage sales, internet stores, and restaurants are all markets. Every market is different. Some markets are local but numerous (such as housing or the market for cement), others are global (such as automobiles or gold). The important point about a market is not what it looks like, but that is philicates trade Buyers, a group, determine the demand side of the market, whether it is consumers purchasing goods or firms purchasing inputs. Sellers, as a group, determine the supply side of the market, whether it is resources owners selling their inputs. It is the interaction of buyers and sellers that determines market prices and output through the forces of supply and demand In this chapter, we focus on how supply and demand work in a competitive market. A
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