ECON-2006EG Study Guide - Quiz Guide: Demand Curve, Market Price, Perfect Competition

21 views4 pages

ceruleanraccoon367

7 Mar 2021

School

Laurentian

Department

Economics / Science Èconomique

Course

ECON-2006EG

Professor

Byron Eastman

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Market: group of economic agents who are trading a good or service, and the rules and arrangements for trading. In a perfectly competitive market: sellers all sell an identical good or service. Individual buyers or sellers aren"t powerful enough on their own to affect the market price of that good or service. Market price occurs when all sellers and buyers face the same price. A price-taker is a buyer or seller who accept the market price. Quantity demanded is the amount of a good that buyers are willing to purchase at a given price. Quantity supplied is the amount of a good or service that sellers are willing to sell at a given price. A demand schedule is a table that reports the quantity demanded at different prices, holding all else equal. A supply schedule is a table that reports the quantity supplied at different prices, holding all else equal.

Related Questions

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

ceruleanseal203

Choose a market for a good in your area that seems to be a perfectly competitive market. Perfect competition is useful in analyzing real-world markets, even though there are very few, if any, that match the characteristics of the perfect competition model. Answer the following questions to describe the market, and describe how competitive the market you have chosen is:

What good or service is provided in this market?

Who are the buyers and who are the sellers in the market?

Are there many sellers in the market?

Are there very many substitutes for the good or service?

If the store where you usually buy this item raised its prices, would you go to another store or switch products? Explain.

Do you think that this a competitive market? Explain.

erinlouse173

7) Indicate whether each of the following statements is true or false, and explain why.

A. Producer surplus tends to fall as the supply curve becomes more elastic.

B. Consumer surplus tends to rise as demand becomes more elastic.

C. The market demand curve indicates the minimum price buyers are willing to pay at each level of production.

D. The market supply curve indicates the minimum price required by sellers as a group to bring forth production.

E. Consumer surplus is the amount that consumers are willing to pay for a given good or service above and beyond the amount actually paid.

bronzeoyster264

ECON-2006EG Study Guide - Quiz Guide: Demand Curve, Market Price, Perfect Competition

Document Summary

Get access

Related Documents

ECON-2006EG Study Guide - Quiz Guide: Normal Good, Perfect Competition, Marginal Cost

ECON-2006EG Study Guide - Quiz Guide: Perfect Competition, Demand Curve, Competitive Equilibrium

ECON-2006EG Study Guide - Quiz Guide: Ceteris Paribus, Market Clearing, Perfect Competition

Related Questions