ECN 204 Chapter 4: Chapter 4.docx
15 Mar 2012
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Document Summary
Chapter 4: the market forces of supply and demand. Markets and competition supply and demand - behaviour of ppl as they interact with one another in mkts. Market - group of buyers and sellers of a particular good/ service: buyers determine demand, sellers determine supply. Price and quantity are determined by all buyers and seller as they interact in the mktplace competitive mkt - so many buyers and so many sellers that each has a negligible impact on the mkt price. Price takers - perfectly competitive mkt must accept the price mkt determine. Monopoly - only one seller and this seller sets the price. The demand curve: the relationship between price and quantity demanded. Demand schedule - table that shows the relationship b/ the price of a good and the quantity demanded, holding constant everything else that influ how much consumers of the good want to buy.
