ECON 1000 Lecture 7: Week 4
8 May 2017
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Econ 1000 week 4 lecture 7. In a competitive market there"s lots of buyers. Each buyer is a small part of the market (demand) Lots of small sellers, each seller is a small part of the market. In a cm all we care about is the price of the product and the amount being sold. We can place both the demand and supply curve on the same graph, they are generally perpendicular to each other. At the point where the curves intersect is known as the equilibrium price. Which means the quantity supply = the quantity of demand, we are basically getting our products at the price we want. On this graph when we buy we can only buy the amount that is supplied, even if we want 250, if there are only 100 of x product then we can only purchase 100.
