Micro 4 - Chapter 4 -Markets: a group of buyers and sellers...

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Chapter 4 -Markets: a group of buyers and sellers of a particular good or service -buyers determine the demand -sellers determine the supply What is competition? -Competitive market: a market in which there are many buyers and many sellers so that each has a negative impact on the market price -to have a “perfectly competitive” market, it must; 1. The goods offered for sale are exactly the same 2. The buyers and sellers are so numerous that no single buyer or seller has any influence over the market price -Price takers: buyers and seller in a perfectly competitive market that accept the price the market determined. -Monopoly: when a market has only one seller who sets the price Price And Quantity Demanded -Quantity Demanded: the amount of a good that buyers are willing and able to buy -Law of Demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the goods rise -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
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Micro 4 - Chapter 4 -Markets: a group of buyers and sellers...

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