ECON102 Ch. 4 Lecture Notes

ECON102 Ch. 4 Lecture Notes - CHAPTER 4: SUPPLY AND DEMAND...

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CHAPTER 4: SUPPLY AND DEMAND EXAMPLES & EXERCISES ARE COVERED IN CLASS MARKETS: Definition of a MARKET : Any group of buyers and sellers. They can be highly organized (as Wall Street) or not (a street market). Types of Markets : 1. Perfectly Competitive Market: A market characterized by: a) many buyers and many sellers, b) each person has a negligible impact on the market price OR nobody has market power, c) free entry and exit into that market, d) goods offered are identical OR homogeneous. 2. Monopoly: A market with one seller who has market power. 3. Oligopoly: A market with a few sellers who have some market power. 4. Monopolistic Competition: A market characterized by: a) many buyers and many sellers, b) Goods offered are practically the same, but not identical. Hence: c) sellers may have some market power. DEMAND: Definition of Demand : The amount of goods and services that buyers are willing and able to purchase. Determinants of Demand
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This note was uploaded on 12/16/2010 for the course ECON 102 taught by Professor Clague during the Fall '08 term at San Diego State.

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ECON102 Ch. 4 Lecture Notes - CHAPTER 4: SUPPLY AND DEMAND...

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