ECON 1 Lecture Notes - Lecture 4: Atkins Diet, Economic Equilibrium, Bacon
19 Apr 2018
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Markets and competition: a market is a group of buyers and sellers of a particular product, a competitive market is one with many buyers and sellers, each has a negligible effect on price. In a perfectly competitive market: all goods exactly the same, buyers & sellers so numerous that no one can affect market price each is a price taker . In this chapter, we assume markets are perfectly competitive. The demand schedule: demand schedule: a table that shows the relationship between the price of a good and the quantity demanded. Market demand versus individual demand: the quantity demanded in the market is the sum of the quantities demanded by all buyers at each price. Increase in # of buyers increases quantity demanded at each price, shifts d curve to the right. An increase in income shifts d curves for inferior goods to the left. )
