Mike Weisman 9-6-07 ECO 211 Ch. 4 QR 1-11 PA 1-8 1. A perfectly competitive market is a market in which there are so many buyers and sellers that no single buyer or seller can affect the market price by themselves. Every perfectly competitive market must have the same type of goods. A market that is not perfectly competitive is the computer market. You have Microsoft and Apple as the two major companies with other small but not competitive firms. Since there are so few firms, a single one of those firms can change the price of a product by themselves. 2. The price determines the quantity of a good that buyers demand. Also, the situation the buyers are in helps lead to the quantity demanded. 3. The demand schedule shows the relationship between the price and quantity demanded of a good. The demand curve plots all of the points that appear in the demand table. It is just another way of viewing the demand table, graphically. The demand curve slopes downwards because as the price decreases, the quantity
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This note was uploaded on 04/08/2008 for the course ECONOMICS 211 taught by Professor Petitfrere during the Fall '08 term at University of Miami.