ECON 1000 Lecture : Chapter 3 - ECON 1000

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Sam Lanfranco

Document Summary

Markets are arrangements that enables buyers and sellers to get information and to do business with each other. Some markets are places where people can meet physically. Others can be connected only via telephone, internet and fax. Most markets are unorganized collections of buyers and sellers. In the basketball shoe market there are buyers and sellers. Sellers are the tens of thousands of retail sports equipment and footwear stores. Each buyer can visit different stores and each seller knows that the buyer has a choice of stores. Markets vary in intensity of competition that buyers and sellers face. A market that has many buyers and many sellers, so no single buyer or seller can influence the price. Producers sell only if price is high enough to cover opportunity cost. Consumers respond to changing opportunity cost by seeking cheaper alternatives to expensive items. An object"s price is the number of dollars that must be given up in exchange for it.