L4 - ECON 2106-C Professor Byung-Cheol Kim Learning...

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ECON 2106-C Professor Byung-Cheol Kim
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Learning Objectives What a competitive market is. What determines the demand and the supply for a good in a competitive market. How supply and demand together set the price of a good and the quantity sold. How prices play in allocating scarce resources in market economies.
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A is a group of buyers and sellers of a particular good or service. Buyers determine . Sellers determine . A market is a market in which there are many buyers and sellers so that each has a negligible impact on the market price. That is, they act as . What Is a Market?
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What Is a Competitive Market? Conditions for a perfectly competitive market Buyers and Sellers are price takers Products are the same ( products) There is no barriers to . There is no . Information is symmetrically complete. Monopoly One seller, and seller controls price (Price setter)
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Other Market Structures? Oligopoly Few sellers Examples? Strategic interactions between firms Monopolistic Competition Many sellers, but slightly differentiated products Examples? Each seller may set price for its own product
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DEMAND Quantity demanded is the amount of a good that buyers are willing and able to purchase. The demand is a table that shows the relationship between the price of the good and the quantity demanded. The states that, other things equal, the quantity demanded of a good falls when the price of the good rises.
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Catherine’s Demand Schedule
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Price of Ice-Cream Cone 0 2.50 2.00 1.50 1.00 0.50 1 2 3 4 5 6 7 8 9 10 11 Quantity of Ice-Cream Cones $3.00 12 1. A decrease in price ... 2. .
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L4 - ECON 2106-C Professor Byung-Cheol Kim Learning...

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