🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeTextbook Notes300,000CA170,000

ECN 204 Chapter Notes - Chapter 4: Economic Equilibrium, Demand Curve, Shortage

39 views7 pages
School
Ryerson University
Department
Economics
Course
ECN 204
Professor
Paul Missios

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Chapter 4: the market forces of supply and demand. Market: is a group of buyers and sellers of a particular good or service. The buyers as a group determine the demand for the product, and the sellers as a group determine the supply of the product. Competitive market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. Because buyers and sellers in perfectly competitive markets must accept the price that market determines, they are said to be price takers. Monopoly: when a market has only one seller and that seller sets the price. Quantity demanded: the amount of a good that buyers are willing and able to purchase (price plays an important role in determining demand = negatively related to the price) Law of demand: the claim that, other things equals, the quantity demanded of a good falls when the price of the good rises.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ECN 204 Chapter Notes - Chapter 4: Roast Beef
tanpug238
ECN 204 Chapter 4: Chapter 4.docx
taupewombat306
ECN 204 Chapter Notes -Bankrate
orchidgoose215

Related Questions

A competitive market is one in which:

a. is only one seller, but many buyers. 

b. are many sellers, and each has the ability to set the price of his product. 

c. are many sellers and compete with one another in such a way that some sellers are always being forced out of the market. 

d. are so many buyers and so many sellers that each has a negligible impact on the price of the product. 

1. Markets and competition In a perfectly competitive market, all producers sell (perfectly identical/different) goods or services. Additionally, there are (few,many) buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price (takers,makers)

True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets.

Markets explained on the basis of supply and demand:

A. assume many buyers and many sellers of a standardized product.

B. assume market power so that buyers and sellers bargain with one another.

C. does not exist in the real-world economy.

D. are approximated by markets in which a single seller determines the price.