ECON 201 Lecture Notes - Lecture 7: Market Power, Demand Curve

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aquamarinehamster507

28 Sep 2016

School

University of Calgary

Department

Economics

Course

ECON 201

Professor

Staff

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Document Summary

Lecture 7: market forces of supply and demand. Markets: a group of buyers and sellers of a particular product. Competitive market: one with many buyers and sellers, each has a negligible effect on price. Perfectly competitive market: all goods are exactly the same, buyers and sellers are so numerous that no one can affect market price - each is a. Quantity demanded: the amount of a good that buyers are willing and able to pay for. Law of demand: the quantity demanded of a good falls when the price of the good rises, other things equal. A table that shows the relationship between the price of a good and the quantity demanded. This is how we can find the demand of a market. The quantity demanded in the market is the sum of the quantities demanded by all the buyers at each price. You have the add the quantity demanded at each price to find the market demand.

Related Questions

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

ceruleanseal203

Markets, viewed from the perspective of the supply and demand:

A. assume many buyers and many sellers of a standardized product.
B. assume market power so that buyers and sellers bargain with one another.
C. do not exist in the real-world economy.
D. are approximated by markets in which a single seller determines the price.

ultramarinecamel297

Markets, viewed from the perspective of the supply and demand model:

a. assume many buyers and many sellers of a standardized product.
b. assume market power so that buyers and sellers bargain with one another.
c. do not exist in the real-world economy.
d. are approximated by markets in which a single seller determines the price.

ultramarinecamel297

ECON 201 Lecture Notes - Lecture 7: Market Power, Demand Curve

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