ECON 201 Lecture Notes - Lecture 3: Market Price, Equilibrium Point, Market Clearing

65 views5 pages
14 Apr 2016
Department
Course
Professor

Document Summary

Compeiive market economy individuals maximizing individual wellbeing, facilitate trade, and lead to eicient allocaions of resources. Real = in terms of goods, nominal in terms of money value. Market equilibrium aspects: market price, market quanity. Prices fell because not enough people were buying it (low demand) Market arrangement that enables buyers and sellers to get informaion and engage in mutually beneicial trade. Compeiive market many buyers and sellers: price takers no buyer or seller has impact on the prices. They accept market prices as given: same good or service (homogenous) Supply and demand model shows how a compeiive market works. Monopsony consumer controls price: ex: walmart (so big that they can adjust prices to keep that many customers), negoiaions in price of tuiion. Quanity demanded single number, amount that consumers plan to buy at the current price: change in quanity demanded diferent price.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions