{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 4 Powerpoint

Chapter 4 Powerpoint - The Market Forces of Supply and...

Info icon This preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon
The Market Forces of Supply and Demand (Review of Microeconomics) Chapter 4
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 The Market Forces of Supply and Demand A market is a group of buyers and sellers of a particular good or service. (computer mkt, labor mkt, legal service mkt..) Supply and demand are 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.
Image of page 2
3 Markets Buyers determine demand . Sellers determine supply . They determine the equilibrium of market together.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 Market Type: 1. A Competitive Market Products are the same Numerous buyers and sellers so that each has no influence over price Buyers and Sellers are price takers (Agricultural products, like rice, milk etc) Perfect Competition
Image of page 4