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Lecture

ECN 104 Lecture Notes - Demand Curve, Atkins Diet, Cream Cheese


Department
Economics
Course Code
ECN 104
Professor
Tsogbadral Galaabaatar

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Chapter 4
The Market Forces of Supply
and Demand
1
Copyright © 2011 Nelson Education Limited

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In this chapter,
look for the answers to these questions:
What factors affect buyers’ demand for goods?
What factors affect sellers’ supply of goods?
How do supply and demand determine the price
of a good and the quantity sold?
How do changes in the factors that affect
demand or supply affect the market price and
quantity of a good?
How do markets allocate resources?
2
Copyright © 2011 Nelson Education Limited

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Markets and Competition
A market is a group of buyers and sellers of a
particular product.
A competitive market is one with many buyers
and sellers, each has a negligible effect on price.
In a perfectly competitive market:
All goods exactly the same
Buyers & sellers so numerous that no one can
affect market price each is a “price taker
In this chapter, we assume markets are perfectly
competitive.
3
Copyright © 2011 Nelson Education Limited
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