EC120 Chapter Notes - Chapter 4: Economic Equilibrium, Good Technology, Statics

72 views9 pages

coralwoodchuck884

17 Aug 2016

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

carminegrasshopper545 and 38337 others unlocked

EC120 Full Course Notes

Verified Note

30 documents

Document Summary

Ec120: chapter 4 the market forces of supply and demand. Supply and demand are the two words that economists use most often. Supply and demand are the forces that make market economies work. Determine quantity of each good produced and price at which it is sold. Considers how buyers and sellers behave and how they interact with one another. Shows how supply and demand determine prices in market economy and how prices, in turn, allocate economy"s scarce resources. Market: groups of buyers and sellers of a particular g/s. Buyers as a group determine the demand for the product, and sellers as a group determine the supply of the product. Price and quantity are determined by all buyers and sellers as they interact in marketplace. Competitive market: market in which there are many buyers and many sellers so that each has a negligible impact on the market price.

Related Questions

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

ceruleanseal203

1. Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand?

2.If a market is in equilibrium, is it necessarily true that all buyers and sellers are satisfied with the market price? Briefly explain.