ECON BC 1003x Lecture Notes - Lecture 5: Ceteris Paribus, Demand Curve
Document Summary
We are all a part of the market. Interactions: physical location or online, coffee shops, Two types of (major) markets: factor market. Dollars and exchange: bartering is the direct exchange of one good for another, without the use of money. Goods exchanged with goods or goods exchanged with services. Quite limited: money facilitates market exchanges. Market transactions: supply ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus (other variables remaining the same) Profit = tr (total revenue) tc (total cost) (price - average total cost (atc)) x q. Firms supply goods and services in the product market: demand ability and willingness to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus (other variables remaining the same) People demand goods and services in the product market. Firms demand factors of production in the factor market.