Econ 201 reading notes-2

Econ 201 reading notes-2 - 20:23 The Market Forces of...

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20:23 The Market Forces of Supply and Demand - supply and demand are the forces that make market economies work - Market- a group of buyers and sellers of a particular good or service buyers as a group determine the demand for the product, and the sellers as a group  determine the supply of the product 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 Demand Curve The relationship between price and quantity demanded Quantity demanded- the amount of a good that buyers are willing and able to purchase Law of demand- the claim that, other things equal, the quantity demanded of a good  falls when the price of the good rises Demand schedule- a table that shows the relationship between the price of a good and  the quantity demanded Demand curve- a graph of the relationship between the price of a good and the quantity  demanded Market demand- the sum of all the individual demands for a particular good or service Market demand curve shows how the total quantity demanded of a good varies as the 
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This note was uploaded on 01/18/2012 for the course ECON 201 taught by Professor C.liedholm during the Summer '07 term at Michigan State University.

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Econ 201 reading notes-2 - 20:23 The Market Forces of...

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