ECN 104 Lecture Notes - Demand Curve, Atkins Diet, Cream Cheese
21 Mar 2013
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In this chapter, look for the answers to these questions: 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. 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. The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase. Law of demand: the claim that the quantity demanded of a good falls when the price of the good rises, other things equal. Demand schedule: a table that shows the relationship between the price of a good and the quantity demanded. The quantity demanded in the market is the sum of the quantities demanded by all buyers at each price.
