ECON-UA 1 Chapter Notes - Chapter 3: Ceteris Paribus, Maple Syrup, Demand Curve
18 Mar 2014
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* any economy is constrained in terms of the amount of limited resources available. Market - a group of buyers and sellers with the potential to trade. (willing and able) > assumed that these individuals are voluntarily entering transactions. Common way to own physical capital - through investments (purchasing stocks & bonds). Circular flow model - shows how resources are facilitated throughout markets. * individual households are owning all the resources (with exception of some by government) * perfect competition - competitive market all buyers and sellers have no influence over price. (every buyer and seller has to take the price given, e. x walking into the apple store). * imperfect competition - buyers and sellers can influence price. * quantity demanded - the amount buyers will buy over a given period of time, given their constraints. (you will buy different amounts of things that are priced different - basic premise)
