ECO 105 Chapter Notes - Chapter 4: Perfect Competition, Takers, Normal Good
3 Feb 2017
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Market: is a group of buyers and sellers of a particular good or service. Competitive market: to describe a market in which there are so many buyers and so many sellers that each has a negotiable impact on the market place. Perfectly competitive: has two characteristics, the goods offered for sale are all the same and the buyers and sellers are so numerous that no single buyer or seller has any influence over the market place. Price takers: buyers and sellers in perfectly competitive markets must accept the price the market determines. Monopoly: when some markets only have one buyer and one seller so they set the price. Quantity demanded: of any good is the amount of the good that buyers are willing and able to purchase. Law of demand: when the price of a good rises, the quantity demanded of the good fails, and when the price fails, the quantity demanded rises.
