01:220:102 Chapter Notes - Chapter 3: Demand Curve, Marginal Utility, Marginal Cost

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: Erin Fairweather

Document Summary

Competitive market- market that has many buyers and many sellers, so no single buyer or seller can influence the price. Money price- price of an object is the number of dollars that must be given up in exchange for it. Relative price- ratio of one price to another. Want it, can afford it, and plan to buy it. Quantity demanded- amount that consumers plan to buy during a given time period at a particular price. Not necessarily the same as the quantity actually bought. Sometimes the quantity demanded exceeds the amount of goods available, so the quantity bought is less than the quantity deman ded. Measured as an amount per unit of time. Law of demand- other things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the pric e of a good, the greater is the quantity demanded.