ECON 101 Chapter Notes - Chapter 4: Comparative Statics, Economic Equilibrium, Demand Curve
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ECON 101 Full Course Notes
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Document Summary
Supply and demand refer to the behavior of people as they interact with one another in markets. A market is a group of buyers and sellers of a particular good or service. Competitive market: used to describe a market in which there are so many buyers and so many sellers that each has a negligible impact on the market price. Each seller of ice cream has limited control over the price because other sellers are offering similar products. Perfectly competitive: the goods offered for sale are all exactly the same and the buyers and sellers are so numerous that no single buyer or seller has any influence over the market price. Monopoly: markets have only one seller, and this seller sets the price. The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase.
