ECON 1BB3 Lecture Notes - Lecture 4: Monopolistic Competition, Perfect Competition, Demand Curve

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: N A

Document Summary

Pepsi max demonstration for last 2 coke0 is available for sh. 75. Market = group of buyers and sellers. There are 4 types of market structure: perfect competition, monopoly, oligopoly (a few firms band together and act like a monopoly, monopolistic competition (lots of buyers and sellers but the goods are not identical) Quantity demanded (qd): the amount of a good that buyers are willing & able to purchase. The variables that influence how much buyers want to buy are: price, income, normal and inferior goods, price of other goods, substitutes and complements, tastes, expectations-> about the price of the good we are talking about. Law of demand: other things equal (ceteris paribus), the quantity demanded of a good falls as the price of the good rises demand schedule. Market demand: the sum of individual demands (ask bronwyn for graphs) Shifts in demand (change in demand) are caused by a change in anything other than price.