Chapter 3

Chapter 3 - Chapter 3 extra notes Sellers determine supply...

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Chapter 3 extra notes Sellers determine supply Buyers determine Demand Perfect competition o 1. Goods being offered for sale are all the same o 2. The buyers and sellers are so numerous that no single buyer and seller can influence market price Monopoly o Has only one seller and this seller sets price Oligopoly o Has a few sellers that do not always compete aggressively Monopolistically Competitive o Contains many sellers but each offers a slightly different product Quantity demanded o The amount of a good that buyers are willing and able to purchase Many factors… o Price is a key one There exists a negative relationship between price and quantity The law of demand o The claim that other things being equal the quantity demanded of a good falls when the price of the good rises. A table that shows the relationship between the price of a good and the quantity demanded A graph of the relationship between the price of a good and Market demand refers to the sum of all individual demands for a particular good or service Graphically
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Chapter 3 - Chapter 3 extra notes Sellers determine supply...

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