2The Market Forces of Supply and DemandAmarketis a group of buyers and sellers of a particular good or service.(computer mkt, labor mkt, legal service mkt..)Supplyanddemandare the forces that make market economies work.Supply and demand determines the equilibrium of market (equilibrium quantity and equilibrium price)Modern microeconomics is about supply, demand, and market equilibrium.
3Markets Buyers determinedemand.Sellers determinesupply.They determine the equilibrium of market together.
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4Market Type: 1. A Competitive MarketProducts are the sameNumerous buyers and sellers so that each has no influence over priceBuyers and Sellers are price takers(Agricultural products, like rice, milk etc)Perfect Competition