Textbook Notes (368,500)
Canada (161,930)
Economics (479)
ECO105Y1 (83)
Paul Cohen (14)
Chapter 4

Chapter 4.docx

2 Pages
83 Views
Unlock Document

Department
Economics
Course
ECO105Y1
Professor
Paul Cohen
Semester
Fall

Description
Chapter 4: Coordinating Smart Choices (Demand and Supply) Market: The interactions of buyers and sellers -Competition happens between buyers competing to buy the same product (example of eBay). From the perspective of sellers, they compete to attract buyers . -Cooperation happens during the interaction between buyer and seller, due to the existence of voluntary trade. Property Rights: Legally enforceable guarantees of ownership to physical, financial, and intellectual property -Prices are the outcome of a market process of competing bids (from buyers) and offers (from sellers). -The best way to understand why prices settle at particular numbers is to look at what happens in markets when prices have not settled. Shortage or (Excess Demand): quantity demanded exceeds quantity supplied. -Shortages create pressure for prices to rise -Rising prices provides signals and incentives for businesses to increase quantity supplied and for consumers to decrease quantity demanded eliminating the shortage. Surplus or (excess supply): quantity supplied exceeds quantity demanded -Surplus creates pressure for prices to fall -Falling prices provide signals and incentives for businesses to decrease quantity supplied and for consumers to increase quantity de
More Less

Related notes for ECO105Y1

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