Chapter 4Questions for Review

Chapter 4Questions for Review - Chapter4QuestionsforReview...

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Chapter 4Questions for Review 1. A competitive market is a market in which there are many buyers and many sellers of  an identical product so that each has a negligible impact on the market price. Another  type of market is a monopoly, in which there is only one seller. There are also other  markets that fall between perfect competition and monopoly. 2. The demand schedule is a table that shows the relationship between the price of a  good and the quantity demanded. The demand curve is the downward-sloping line  relating price and quantity demanded. The demand schedule and demand curve are  related because the demand curve is simply a graph showing the points in the  demand schedule. The demand curve slopes downward because of the law of demand—other things  being equal, when the price of a good rises, the quantity demanded of the good falls.  People buy less of a good when its price rises, both because they cannot afford to 
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This note was uploaded on 11/09/2011 for the course ECO 6789 taught by Professor Hu during the Spring '11 term at Campbell University .

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Chapter 4Questions for Review - Chapter4QuestionsforReview...

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