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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