🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeClass Notes1,200,000US530,000

ECON 13 Lecture Notes - Lecture 5: Perfect Competition, Demand Curve, Microeconomics

39 views4 pages
cerisegiraffe538
28 Jan 2016
School
UC-Irvine
Department
Economics
Course
ECON 13
Professor
George Sarraf

For unlimited access to Class Notes, a Class+ subscription is required.

orangecheetah999 and 9 others unlocked
ECON 13 Full Course Notes
7
ECON 13 Full Course Notes
Verified Note
7 documents

Document Summary

We will use this a lot in the future. Because the most important thing in the market system is price. Price is the mechanism that clears the market. By this we mean that if the supplier has a price that the buyer is not willing to buy, we do not have a business transaction, and the market does not clear. When the price of the seller is equal to the price the buyer is willing to pay, we have an equilibrium. So the price will adjust until we have an equilibrium. We will cover how supply and demand affect the price over the next few lectures. A market is a group of buyers and sellers of a particular product. A competitive market is one with many buyers and sellers, each has a negligible effect on the price of the product. No, because you are one in many buyers. There are so many people so it is competitive.

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

ECON 13 Lecture Notes - Lecture 2: Market Power, Inferior Good, Normal Good
periwinklesnail857
ECON 13 Lecture Notes - Lecture 2: Ceteris Paribus, Atkins Diet, Cream Cheese
byzantiummacaw133
ECON 13 Lecture Notes - Lecture 3: Ceteris Paribus, Market Power, Perfect Competition
olivemosquito159

Related Questions

For a market to be competitive:
 
A) each buyer and seller is small, relative to the world market; no single decision-maker has any influence over the market price.
B) sellers must produce goods and services that are different from their competitors.
C) sellers should have substantial pricing power.
D) all you need are many buyers and many sellers
E) the price must be a fair price

A competitive market is one in which:

a. is only one seller, but many buyers. 

b. are many sellers, and each has the ability to set the price of his product. 

c. are many sellers and compete with one another in such a way that some sellers are always being forced out of the market. 

d. are so many buyers and so many sellers that each has a negligible impact on the price of the product. 

Markets explained on the basis of supply and demand:

A. assume many buyers and many sellers of a standardized product.

B. assume market power so that buyers and sellers bargain with one another.

C. does not exist in the real-world economy.

D. are approximated by markets in which a single seller determines the price.