EC120 Lecture Notes - Lecture 3: Demand Curve, Perfect Competition, Excess Supply
14 views1 pages
carminegrasshopper545 and 38337 others unlocked
30
EC120 Full Course Notes
Verified Note
30 documents
Document Summary
Demand curve is relevant in any market. While a supply curve is only relevant in a competitive market. To be a competitive market we need a lot of choice: the more choices a customer has the lower companies must push their prices creating more competition. Perfect competition is rare, but easiest for the class to understand: starting here is easiest for students. Quantity demanded: how many are bought given a price. Quantity: how much of one product exists in the market: the difference is how many are want to be bought (quantity) vs how much are actually bought (quantity demanded) U(cid:374)less i(cid:374)fo is provided does(cid:374) t assu(cid:373)e that that a good is (cid:374)or(cid:373)al or i(cid:374)ferior: making this assumption can lead to you get the wrong answer. As price rises supply rises: law of supply. As prices rises quantity demanded falls: law of demand. Intersection of supply and demand is the equilibrium on the graph.
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers