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Economics 1021A/B Study Guide - Inferior Good, Economic Equilibrium, Normal Good

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School
Western University
Department
Economics
Course
Economics 1021A/B
Professor
Emilie Rivers

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ECON 1021A/B Full Course Notes
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ECON 1021A/B Full Course Notes
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Document Summary

A market is any arrangement that enables buyers and sellers to get information and do business with each other. A competitive market is a market that has many buyers and many sellers so no single buyer or seller can influence the price. The quantity demanded of a good or service is the amount that consumers plan to buy at a particular price, during a particular time period. The law of demand states that (other things remaining the same): When the relative price (opportunity cost) of a good or service rises . When the price of a good or service rises relative to income . The term demand refers to the entire relationship between. When all other influences on consumers" planned purchases remain the same. A demand curve is also a willingness-and-ability-to- pay curve. When some influence on buying plans other than the price of the good changes, there is a change in demand for that good.

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Related Questions

Which of the following statements describe a competitive market?
 
a. Sometimes, a single seller has the ability to dictate the market price.
b. Buyers and sellers negotiate prices before making exchanges.
c. The market price is determined by the interaction of demand and supply.
d. The market price for the same good varies from seller to seller.

Which of the following statements correctly describes a competitive market?

A) The market price for the same good varies from seller to seller.

B) Sometimes, a single seller has the ability to dictate the market price.

C) The market price is determined by the interaction of demand and supply.

D) Buyers and sellers negotiate prices before making exchanges.

For a market to be competitive:
 
A) each buyer and seller is small, relative to the world market; no single decision-maker has any influence over the market price.
B) sellers must produce goods and services that are different from their competitors.
C) sellers should have substantial pricing power.
D) all you need are many buyers and many sellers
E) the price must be a fair price