FMSC 381 Lecture Notes - Lecture 8: Demand Curve, Perfect Competition, Chipotle
31 Aug 2016
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Fmsc290 test 2 material: comparative advantage - whoever produces something at the lower opportunity cost -> becomes supplier of the product. Words economists use most often the forces that make market economies work refer to the behavior of people as they interact with one another in competitive markets. Example: you demand food from chipotle with your order and money they supply the food and change market: interaction between people that includes money. A group of buyers and sellers of a particular good or service. Buyers as a group: determine the demand for the product sellers as a group, determine the supply of the product markets take many forms: Highly organized: markets for many agricultural commodities less organized, market for ice cream in a particular town. Price and quantity are determined by all buyers and sellers: as they interact in the marketplace. Goods offered for sale are all exactly the same.
