ECON 1B03 Lecture Notes - Lecture 3: Inverse Demand Function, Demand Curve, Ceteris Paribus
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ECON 1B03 Full Course Notes
Market: a group of buyers and sellers of a particular good or service. The terms supply and demand refer to the behaviour of people as they interact with one another in markets. Market demand refers to the sum of all individual demands for a particular good or service. Marker supply refers to the sum of all individual demands for a particular good or service. For the next while we"ll study what is often considered ideal: Firms can freely enter or exit the market. Buyers and sellers are so numerous that no individual consumer or. Rm can affect the market price; each is a price taker. Quantity demanded, qd: the amount of a good or service that consumers are willing and able to buy at a given price, p. When the price of a good increases, you buy less of that good. We say price and qd are negatively related; as p increases, qd decreases.