Textbook Notes (362,870)
Canada (158,081)
Economics (586)
ECON 101 (211)
Chapter 3

Chapter 3 - Demand and Supply.docx

2 Pages
Unlock Document

University of Waterloo
ECON 101
Shi Lei Niu

CHAPTER 3 Demand and Supply Markets and Prices The place where you find products and services is a market - A market has two sides: buyers and sellers - There are markets for goods and services, as well as resources and inputs - Some markets are physical places where buyers and sellers meet and some markets are groups of people spread around the world who never meet but connected through internet or by phone. - Most markets are unorganized collections of buyers and sellers - Competitive market – a market that has many buyers and sellers, so no single buyer or seller can influence the price - Producers offer items for sale only if the price is high enough to cover their opportunity cost - The price of an object is the number of dollars that must be given up in exchange for it. Economists refer to this as money price - The ratio of one price to another is called relative price, and a relative price is an opportunity cost Demand If you demand something, then you want it, can afford it, and plan to buy it. - Wants are the unlimited desires or wishes that people have for goods and services - Demand reflects a decision about which one wants to satisfy - Quantity demanded of a good or service is the amount that consumers plan to buy during a given time period at a
More Less

Related notes for ECON 101

Log In


Don't have an account?

Join OneClass

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

Sign up

Join to view


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.