ECN 104 Chapter Notes - Chapter 4: Demand Curve, Perfect Competition, Inferior Good
Document Summary
Chapter 4 market forces of supply and demand. Market are a group of buyers and sellers of a particular good or service. The buyers determine the demand of the product and sellers demand the supply. People buying ice-cream don"t buy the ice cream at the same place and time. And the sellers are in different place, different times and have different products. Competitive market is an markets in which there are many buyers and sellers so that each has a negligible impact on the market place. Sellers have limited control over the price. Because they can"t sell for less or sell at a higher price. In this chapter we assume, markets are perfectly competitive: the goods are offered for sale at the same time, the buyers and sellers that no single buyers and seller has any influence over the market price.