ECON 101 Lecture Notes - Lecture 5: Virtual Places Chat, Normal Good, Economic Equilibrium
Document Summary
The supply and demand framework is an economic model designed to make predictions about the amount of good exchanged and the exchange price in a competitive market. Key features of a competitive market: a large number of buyers and sellers, price taking: the inability for any one buyer or seller to affect the price, firms are selling uniform products (products aren"t differentiated). Quantity demanded: the actual amount of a good, service, or resource that consumers are willing and able to buy during a given time period at a particular price. Demand: the relationship between the quantity demand and the price of a good when all other influences on buying plans remain constant. Demand schedule: a table showing how much of a good or service consumers will want to buy at different prices. Demand curve: a graphical representation of the relationship between the quantity demanded of a good and its price when all other influences on buying plans remain the same.
