ECO 1104 Lecture Notes - Lecture 5: Ceteris Paribus, Demand Curve, Perfect Competition
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Chapter 3: markets (part 1) (september 20 2018) Markets: a market refers to the buyers and sellers who trade particular good or service. We used to have all physical markets (byward) but we now have more visual markets. If price falls (goes up), the benefit of the good/service remains the same, but the opportunity cost falls (goes up) Price goes up demand is lower (quality is the same) Price goes down demand is higher. Higher the price - lower the demand. The lower the price - higher the demands. Whe(cid:374) pri(cid:272)es (cid:272)ha(cid:374)ges it"s the de(cid:373)a(cid:374)d that (cid:272)ha(cid:374)ges not price: the demand can be represented as a demand schedule or a demand curve. Price goes up opportunity cost goes up (you can buy less things) Price goes down opportunity cost goes down (you can buy more things) The demand schedule: a demand schedule displays the quantities demanded at various prices, price goes down quantity and demand goes up.