Chapter 4 - Chapter 4 A. Supply and Demand a. Forces that...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 A. Supply and Demand a. Forces that make market economies work. b. Determine quantity and price of each good sold. B. Market a. Buyers group determines the demand for the product b. Sellers determine the supply of the product. c. Organized (agricultural commodities where buyers and sellers meet at time and place to set prices and arrange sales) d. Unorganized (Ice cream market. Sellers in different locations, buyers determine where to purchase and how much to get.) C. Competition a. Ice cream market. Sellers are competing for buyers to purchase their product. Price and quantity determined by all buyers and sellers as they interact in marketplace. b. Each seller has limited control over market price. c. Markets like this are perfectly competitive (Goods offered are exactly the same and buyers and sellers are so numerous that no single one has influence, also called price takers ) d. Markets with one seller who determines price is a Monopoly D. Demand a. Price plays central role. If ice cream price rose to $20 a scoop, people would buy less. b. Quantity demanded is negatively related if demand increases when price falls, and vice versa. E. Market v Individual Demand
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/03/2008 for the course ECO 2013 taught by Professor Johnhodgson during the Spring '08 term at University of South Florida - Tampa.

Page1 / 3

Chapter 4 - Chapter 4 A. Supply and Demand a. Forces that...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online