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ECON 1B03 Lecture Notes - Lecture 4: Shortage, Fudge, Frozen Yogurt

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School
McMaster University
Department
Economics
Course
ECON 1B03
Professor
Hannah Holmes

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ECON 1B03 Full Course Notes
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ECON 1B03 Full Course Notes
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Document Summary

Market a group of buyers and sellers of a particular good or service. (buyers determine demand, sellers determine the supply) Competitive market a market in which there are many buyers and many sellers so that each has a negligible impact on the market price (could cause sellers to lower prices) Monopoly when a market has only one seller who sets the price. The demand curve: relationship between price and quantity demand. Demand schedule a table that shows the relationship between the price of a good and the quantity demand. # of consumers of pepsi max in relation to price. Demand curve a graph of the relationship between the price of a good and the quantity demanded. If something happens to alter the quantity demand at any given price, the demand curve shifts. Income lower income = less money to spend (demand for x" drops)

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Related Questions

Which of the following statements correctly describes a competitive market?

A) The market price for the same good varies from seller to seller.

B) Sometimes, a single seller has the ability to dictate the market price.

C) The market price is determined by the interaction of demand and supply.

D) Buyers and sellers negotiate prices before making exchanges.

A competitive market is one in which:

a. is only one seller, but many buyers. 

b. are many sellers, and each has the ability to set the price of his product. 

c. are many sellers and compete with one another in such a way that some sellers are always being forced out of the market. 

d. are so many buyers and so many sellers that each has a negligible impact on the price of the product. 

Markets, viewed from the perspective of the supply and demand:

A. assume many buyers and many sellers of a standardized product.
B. assume market power so that buyers and sellers bargain with one another.
C. do not exist in the real-world economy.
D. are approximated by markets in which a single seller determines the price.