ECO101H1 Lecture Notes - Lecture 2: Atkins Diet, Demand Curve, Inferior Good
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ECO101H1 Full Course Notes
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Document Summary
Refers to the behavior of people as they interact with one another in competitive markets. Market: a group of buyers and sellers of a particular good or service. Some markets are organized, with an auctioneer, setting the prices for all the goods and services. Most markets are less organized, with no auctioneer and sellers are in different locations, each setting their own prices for their goods and services. Competitive market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. Perfectly competitive: the goods offered for sale are all exactly the same, the buyers and sellers are so numerous that no single buyer or seller has any influence over the market price. Price takers: buyers and sellers must accept the price the market determines, no one affects the market price, when there is only one seller in a market so they get to set the price.
