ECN 104 Lecture Notes - Lecture 4: Demand Curve, Inferior Good, Normal Good
13 Apr 2016
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Ecn 104: microeconomics - chapter four reading notes. Market: a group of buyers and sellers of a particular good or service. The buyers of the group determine the demand of the product and the sellers of the group determine the supply. Competitive market: a market in which there are many buyers and many sellers so that each had negligible impact on market price. Perfectly competitive markets are defined by two primary characteristics: the goods being offered for sale are all the same, the buyers and sellers are so numerous that no single buyer or seller can influence the market price. Quantity demand: the amount of a good that buyers are willing and unable to purchase. What determined the quantity and individual demands? (demand) Price: when the price of a product rise, you are less likely to purchase it. If the price of the product decreases, you are more likely to buy a larger amount of it.
