BUSAD 120 Lecture Notes - Lecture 29: Ceteris Paribus, Demand Curve, Perfect Competition
Document Summary
A market is a group of buyers and sellers of a particular good or service. A competitive market is a market in which there are so many buyers and so many sellers that each has a negligible impact on the market price. The smaller the ability of each buyer/seller to affect the market price, the more competitive the market. Throughout this subject we will assume that markets are perfectly competitive (pc). To reach this highest formddddddddddddddddddddddddddddd of competition, a market must have two characteristics: The goods being offered for sale are all exactly the same (homogeneous) The buyers and sellers are so numerous that none can influence the market price. Because buyers and sellers accept the market price as given, they are often called price takers". Demand quantity demanded of a good is the amount of a good that buyers are willing and able to purchase. Willing = a buyer wants to buy that amount (given his/her tastes and preferences)
