The market Forces of Supply and demand Chapter 4
The Market Forces of Supply and Demand Chapter 4
The market forces of Supply and demand Supply and Demand are the two words that economists use most often o Supply and Demand are the forces that make market economies work o Modern microeconomics is about supply, demand and equilibrium
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. • Modern microeconomics is about supply, demand and equilibrium
Markets o a market is a group of buyers and sellers of a particular good or service The terms supply and demand refer to the behavior of people.. as they interact with one another in markets o The buyers as a group determine the demand o The sellers as a group determine the supply
Markets • A market is a group of buyers and sellers of a particular good or service. • The terms supply and demand refer to the behavior of people … as they interact with one another in markets. • The buyers as a group determine the demand. • The sellers as a group determine the supply
Market Type A competitive market is a market in which with many buyers and many sellers that is not controlled by an ty one person in which a narrow range of prices are established that buyers and sellers act upon
Market Type A competitive market is a market in which • … with many buyers and many sellers • … that is not controlled by any one person • … in which a narrow range of prices are established that buyers and sellers act upon
Competition: Perfect and otherwise Perfect competition: e Products are all the same Numerous buyers and sellers so that each has no influence over the price Buyers and sellers are price takers no entry barriers
Competition: Perfect and otherwise Perfect competition: • Products are all the same • Numerous buyers and sellers so that each has no influence over the price • Buyers and sellers are price takers • No entry barriers…