EconH200L4 - Supply and Demand A market is a group of...

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Supply and Demand A market is a group of buyers and sellers of a particular good or service. The definition of the good is a matter of judgement: Should different locations entail different goods (and different markets)? What about quality, time, or other characteristics? A perfectly competitive market is one in which (i) the goods offered for sale are identical, and (ii) there are so many buyers and sellers that no one 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, so perfect competition is important even if few markets exactly match the assumptions.
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