ECON 201 Chapter Notes -Ceteris Paribus, Demand Curve, Cable One
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ECON 201 Full Course Notes
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Market: a group of buyers and sellers of a particular good or service. Buyers/sellers as a group determine the demand/supply of the product. Competitive market: a market in which there are many buyers and sellers so that each has a negligible impact of the market price. Each seller has limited control over the price because others are selling similar products. Perfectly competitive ex. wheat: goods offered for sale are exactly the same, buyers and sellers are so numerous that no single buyer or seller has any influence over the market price. Cable: one seller that sets the price. Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the quantity demanded of a good falls when the price of the good rises, ceteris paribus. the quantity demanded. Demand schedule: a table that shows the relationship between the price of a good and.