Textbook Notes (369,035)
Canada (162,359)
Psychology (860)
PSY 105 (152)
Chapter 4

Chapter 4 notes.doc

2 Pages
106 Views
Unlock Document

Department
Psychology
Course
PSY 105
Professor
Kristin Vickers
Semester
Winter

Description
Chapter 4 – The Market Forces of Supply and Demand MARKETS AND COMPETITION What is Competition? -70 • Market: group of buyers and sellers of a particular good or service • Buyers determine demand ; sellers determine supply • Competitive market: many buyers and sellers neither has effect on market price • Perfectly competitive: higest form of competition; two characteristics [1] all goods offered are exactly the same [2] numerous buyers and sellers so neither has influence on market price  price takers DEMAND The Demand Curve: The Relationship between Price and Quantity Demanded • Quantity demanded: amount of good that buyers are willing and bale to buy • Negatively related to price  law of demand price rises QD falls • Table – demand schedule ; graph -> demand curve • Market demand curve  sum of all the individual demands for a particular good or service (see page 73 for example) Income • Normal good: demand of good falls when income falls ie. Ice cream • Inferior good: demand of good rises when income falls ie. Bus rides • Wealth effect: the impact of changes in wealth on both the amount and composition of goods that individuals consume Prices of related goods • Substitutes: price of one good reduces the demand for another good ie. Ice cream and frozen yogurt • Complements: goods
More Less

Related notes for PSY 105

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit