ECON 1000 Chapter Notes - Chapter 3: Demand Curve, Opportunity Cost, Energy Drink

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Simin Seury

Document Summary

Markets vary in the intensity of competition that buyers and sellers face. Competitive market: a market that has many buyers and many sellers, so no single buyer or seller can influence the price. The price of an object is the number of dollars that must be given up to exchange for it economist call its money price. Relative price: is the ratio of one price to another and a relative price is an opportunity cost. To calculate this relative price, we divide the money price of a good by the money price of a basket of all goods (called price index) The resulting relative price tells us the opportunity cost of the good in terms of how much of the basket we must give up to buy it. Quality demanded of a good or service is the amount that consumers plan to buy during a given time period at a particular price.