The market forces of supply and demand

The market forces of supply and demand - The market forces...

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The market forces of supply and demand Supply and demand - are forces that make market economies work determine the quality of each good produced and the price at which it is sold Market and Competition Supply and demand refer to the behavior of people as they interact with one another in competitive markets What is a Market? Market a group of buyers and sellers of a particular good or service buyers- determine the demand for the product sellers- determine the supply of the product can be more or less organizied What is Competition? Price and quality are determined by all buyers and sellers as they interact in the marketplace Competitive market a market in which there are many buyer and man sellers so that each has a negligible impact on the market place perfectly competitive (what we assuming as a market) to reach the highest form of competition, a market must have two characteristics: 1) the goods offered for sale are exactly the same 2) the buyers and sellers are so numerous that no single buyer or seller has any influence over the market price
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This note was uploaded on 11/09/2011 for the course ECON-E 201 taught by Professor Olson during the Spring '10 term at Indiana.

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The market forces of supply and demand - The market forces...

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