Lesson I.1 Managerial Economics BA 445 Review Questions 1 Lesson TopicsMarket Demand Curves show the amount a good that will be bought at alternative prices, holding other factors constant. Grocery prices are outside each buyer’s control when enough buyers compete to buy.Market Supply Curves show the amount a good that will be sold at alternative prices, holding other factors constant. Mall prices are outside each seller’s control when enough sellers compete to sell.Competitive Markets require enough competing buyers and competing sellers so prices are outside of everyone’s control. At the other extreme, one buyer and one seller negotiate price.Competitive Market Equilibrium is the price that equates supply and demand. At any lower price, shortage raises the price; and at any higher price, surplus lowers the price.Tax Equilibrium (1)is the price that equates supply and demand after the government taxes trade. That tax reduces trade, and drive a wedge between
has intentionally blurred sections.
Sign up to view the full version.