Ch 4 Supply and Demand

Ch 4 Supply and Demand - Chapter 4 The Market Forces of...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: The Market Forces of Supply and Demand Supply and demand are the two words economist use most often Determines the price of each produced and price at which is sold Market & Competition What is a Market? Market: a group of buyers and sellers of a particular service or good Organized markets are where buyers and sellers meet at a specific time and place Markets are often less organized What is Competition? Competitive Market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price The goods offered for sale are all exactly the same The buyers and sellers are so numerous that no single buyer or seller has any influence over the market price When a market has one seller, they set the price – monopoly Perfectly competitive markets are the easiest to analyze Everyone participates in the market takes the price as given by market conditions Demand The Demanded Curve: The Relationship Between Price & Quality Demand Quantity demanded: the amount of a good that buyers are willing and able to purchase Laws of demand: the claim that other things equal, the quantity demanded of good falls when the price of the good rises (P Q , P Q )
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern