Textbook Notes (369,133)
Canada (162,403)
Economics (923)
ECN 104 (387)
Eric Kam (21)

Market forces of supply and demand.

2 Pages

Course Code
ECN 104
Eric Kam

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Chapter 4The Market Forces of SupplyDemandWhat is a markety A group of buyers and sellers of a particular GSy The buyers as a group determine the demand while sellers determine the supply for a particular GSWhat is Competitiony Competitive Market A market in which there are many buyers and sellers so that each has a negligible impact on the market place y Perfectly Competitive all the goods are exactly the same y A market must have 2 characteristics 1 the goods offered for sale are all exactly the same and 2 the buyers and sellers are so numerous that no single buyer or seller has any influence over the market price y Buyers and sellers in perfectly competitive markets must accept the price the market determines therefore they are price takersDemandy Quantity Demanded the amount of a good that buyers are willing and able to purchasey Law of Demand the clam that other things equal the quantity demanded of a good falls when the price of the good risesy Demand Schedule a table that shows the relationship between the price of a good and the quantity demandedy Demand Curve a graph of the relationship between the price of a good and the quantity demanded Market vs Individual Demand y Market Demand the sum of all the individual demands for a particular GS y Market demand curve shows how the total quantity demanded of a good varies as the price of the good varieswhile all other factors that affect how much consumers want to buy are held constantShifts in Demand y An increase in the demand of GS shifts the
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