EC 201 Lecture Notes - Lecture 1: Demand Curve, Determinant, Normal Good

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olivepig992

25 Apr 2016

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Collusion -secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others. ~ when the demand for the good is high, the price of that good will also be high. Cartel - an agreement between competing firms to control prices or exclude entry of a new competitor in a market. ~ all cartels need to do is manipulate the price of the last unit in and all members benefit. ~ pay as bid auctions are harder to manipulate. ~ in the uk electricity market, there is a visible hand running things (computer) most markets do not have this. Competitive market - a market in which there are many buyers an many sellers so that the behavior of an individual buyer/seller has a very small impact on the market price. ~ market for new ipads? it is a monopoly, not competitive. Quantity supplied: amount of sellers are willing and able to sell.

Related Questions

With the products below and the events that affect them, indicate what happens to the demand, supply, equilibrium quantity, and the equilibrium price in a competitive market. What is the determinant of demand and/or supply responsible for the shift? Is there more than one shift? Is the new equilibrium price or quantity indeterminate?

1)Tobacco. Most of the worldâs tobacco crop has been destroyed by Nematodes; more people quit smoking.

2)Diesel Fuel. Crude oil production declines due to a crisis in the Middle East.

3)New homes. The average incomes fall as the economy moves into a recession; the productivity of home construction workers and builders increases.

4) iPads. More schools require students to purchase and use iPads.

Choose a market for a good in your area that seems to be a perfectly competitive market. Perfect competition is useful in analyzing real-world markets, even though there are very few, if any, that match the characteristics of the perfect competition model. Answer the following questions to describe the market, and describe how competitive the market you have chosen is:

What good or service is provided in this market?

Who are the buyers and who are the sellers in the market?

Are there many sellers in the market?

Are there very many substitutes for the good or service?

If the store where you usually buy this item raised its prices, would you go to another store or switch products? Explain.

Do you think that this a competitive market? Explain.

erinlouse173

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

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EC 201 Lecture Notes - Lecture 1: Demand Curve, Determinant, Normal Good

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