ECON101 Chapter Notes - Chapter 3: Opportunity Cost, Demand Curve

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Shi Lei Niu

Document Summary

The place where you find products and services is a market. A market has two sides: buyers and sellers. There are markets for goods and services, as well as resources and inputs. Some markets are physical places where buyers and sellers meet and some markets are groups of people spread around the world who never meet but connected through internet or by phone. Most markets are unorganized collections of buyers and sellers. Competitive market a market that has many buyers and sellers, so no single buyer or seller can influence the price. Producers offer items for sale only if the price is high enough to cover their opportunity cost. The price of an object is the number of dollars that must be given up in exchange for it. The ratio of one price to another is called relative price, and a relative price is an opportunity cost.