ECO 112 Lecture Notes - Lecture 3: De Beers, Inverse Relation, Market Economy
Document Summary
Chapter 4: the market forces of supply and demand. Want to purchase goods supplied by firms. Supply or demand factors can change the market price. 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 the 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. No one individual has any influence over the price. The price is determined by the entire market. One fisherman does not determine the price of fish at the market. One farmer does not determine the price of corn. Buyer or seller has an influence on the price. Exists when a single company supplies the entire market for a good or service. The amount of a good purchased at a given price.
