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Unformatted text preview: 4 Book Notes Econ 201 SUPPLY AND DEMAND. Market: a group of buyers and sellers of a particular good or service. Markets can either be highly organized and connected or almost completely individualized. Competitive Market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. When a market is perfectly competitive , it is when: 1. The goods offered for sale are all exactly the same 2. The buyers and sellers are so numerous that no single buyer or seller has any influence over the market price. Monopolys set the price of a good, such as Apple they are the only seller of Mac Books, so they set the price for them. Assume Perfect Competition. DEMAND Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises. Demand Schedule: a table that shows the relationship between the price of a good and the quantity demanded....
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- Spring '10
- Supply And Demand