ECO 1002 Lecture 5: ECO 3.1
Document Summary
Markets and the nature of competition: firms. Supply or demand factors can change the market price. Markets: sellers and buyers come together to form a market. Markets exist whenever goods and services are exchanged. Doesn"t have to be a physical place. Resources are allocated among households and firms with little or no government interference. The main economic structure of the united states prices are determined by the forces of supply and demand. Competitive markets: characteristics of a competitive market. No one individual has any influence over the price. The price is determined by the entire market: examples. One fisherman does not determine the price of fish at the market. One farmer does not determine the price of corn. The amount of a good purchased at a given price: law of demand. Table showing the relationship between price and quantity demanded: demand curve. Graph of the relationship between price and quantity demanded: market demand.
