test1 review

test1 review - E con 004 Chapter 2 Review Market where...

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Econ 004 Chapter 2 Review Market – where buyers and sellers come together - Many buyers and sellers - Homogenous products - No barriers to entry/exit (continuously new firms) - Everyone is a price taker - Everyone has perfect information Demand – not only what you want but what you can buy -when price goes up, quantity demanded goes down Demand Schedule – a table showing the relationship between the price of a product and the quantity of the product demanded Quantity demanded – the amount of a good or service that a consumer is willing and able to purchase at a given price Demand Curve Market Demand – the demand by all consumers of a given good or service The Law of Demand – if everything else is constant (ceteris paribus), when the price falls, the quantity demand will increase, and vice-versa Substitution Effect – the change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods and services (price increases of A, the quantity demanded of B increases)
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test1 review - E con 004 Chapter 2 Review Market where...

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