COMMERCE 1BA3 Lecture Notes - Lecture 4: Demand Curve, Perfect Competition, Inferior Good
7 May 2016
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Chapter 4 the market forces of supply and demand. Supply and demand are the forces that make market economies work- they determine the quantity of each good produced and the price at which it is sold. A market is a group of buyers and sellers of a particular good or service. Buyers as a group determine the demand for the product. Sellers as a group determine the supply of the product 12. Market can be highly organized: e. g. in markets for agricultural commodities, buyers and sellers meet at specific time and place where auctioneer helps set prices. Market can be less organized: e. g. market for ice cream in a town- buyers do not meet together at one time, and ice cream is sold in different places all over the town. Buyers and sellers in perfectly competitive markets are said to be price takers (cid:0) market they must accept the price determined by the.
