chapter3 - The Circular Flow -Consumers -Business firms...

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The Circular Flow -Consumers -Business firms -Government -Intenational participants The Two Markets Factor markets : any place factors of production (land, labor capitol) are sold Product Markets : Any place finished goods and services are bought and sold Supply/Demand The seller is on the SUPPLY side of the market The buyer is on the DEMAND side Supply : The ability and willingness to sell specific quantities of at good alternative prices in a given time period, ceteris paribus Demand : The ability and willingness to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus Individual Demand Demand schedule : A table showing quantities of a good a consumer is willing and able to buy at alternative prices in a given time. -"Demand" is an expression of consumer buying intentions, not statement of actualpurchase. The Demand Curve Demand curve : A curve describing quantities of a good a consumer is willing and able to buy at alternative prices in a given time period
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chapter3 - The Circular Flow -Consumers -Business firms...

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