Supply and DemandA marketis a group of buyers and sellers of aparticular good or service. The definition of the good is a matter ofjudgement: Should different locations entaildifferent goods (and different markets)? Whatabout quality, time, or other characteristics?A perfectly competitive marketis one in which(i) the goods offered for sale are identical, and(ii) there are so many buyers and sellers that noone can influence the market price.•All buyers and sellers are price takers. •Our market experiment comes pretty close. •Corrugated cardboard, gasoline, soybeans.•This is the model of supply and demand, soperfect competition is important even if fewmarkets exactly match the assumptions.
has intentionally blurred sections.
Sign up to view the full version.