01:960:211 Lecture 4: Micro Lecture Notes Ch.4

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Competitive markets: market that involves so many buyers and sellers that no individual buyer or seller can influence the price. Quantity demanded: the amount of good or service or resource that people are willing and able to buy during a specified period at a specified price an amount per unit of time (ex. amount per day, month, etc) Law of demand: all other things remain the same . If the price of the good rises, the quantity demanded of the good decreases. If the price of the good falls, the quantity demanded of the good increases. Demand: the relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same. Demand schedule: a list of the quantities demanded at each different price when all other influences on buying plans remain the same.

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