Intro to Microeconomics_Agnello_Date_030410

Intro to Microeconomics_Agnello_Date_030410 - Chapter 4...

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Chapter 4 Supply and Demand How do we find out about it? - Natural scarcities - What people want - Choices, trade-offs, costs Go to markets and observe - Prices and quantities of economic variables (goods and services) High Price reflects - scarcity and/or high desirability High quantity reflects - little scarcity and/or much desirability How do markets determine Price and Quantity? What forces interact to determine price and quantity? Who are the players in the market game? - Suppliers - Sellers - Demanders - Buyers Forces are called Supply and Demand Forces get together in markets Type of Markets/ Degree of Competition among Buyers and Sellers - Lexicon of Cases 1) Perfect competition - a lot of competition 1) Homogeneous good (e.g. corn, wheat) 2) Many buyers and sellers 1) No one can affect price 2) Everyone is a “price taker” 3) Nobody is a “price maker” 2) Monopoly - no competition among sellers 1) One seller 2) Monopsony - no competition among buyers; one buyer (e.g. defense department; F-
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This note was uploaded on 08/30/2010 for the course ECON 151 taught by Professor Harris during the Spring '07 term at University of Delaware.

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Intro to Microeconomics_Agnello_Date_030410 - Chapter 4...

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