EC120 Lecture Notes - Lecture 3: Eurocopter Ec120 Colibri, Economic Equilibrium, Excess Supply
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EC120 Full Course Notes
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Incomes, population, preferences: prices of other products (interest rates) Group of buyers and sellers of a good or service. Size of a market depends on the nature of the good. Key issue for government policy- canadian competition bureau: the competition bureau, as an independent law enforcement agency, ensures that canadian businesses and consumers prosper in a competitive and innovative marketplace. Competitive markets require that there are many buyers, with free choice: homogeneous products- no brand differentiation, generally the same product does not need to be identical, numerous buyers and sellers. If there is only one seller- monopoly (iphones) If there are a few sellers- oligopoly (brands of apples) Perfect competition is rare- but is useful starting point. Quantity demanded: amount of a good buyers are willing and able to purchase at a given price. Law of demand: as prices rises, quantity demanded falls. Demand schedule: table showing the relationship between price and quantity demanded.
