Economics 3320A/B Study Guide - Opportunity Cost, Normal Good, Inferior Good
Document Summary
A market is any arrangement that enables buyers and sellers to get information and do business with each other. A market has buyers and sellers, and almost anything could be traded in a stock. A competitive market is a market that has many buyers and many sellers so no single buyer or seller can influence the price. The money of a good is the amount of money needed to buy it. The relative price of a good is the ratio of its money price to the money price of the next best alternative good is its opportunity cost. If you demand something, then you: want it, can afford it, and, have made a definite plan to buy it. Wants are the unlimited desires or wishes people have for goods and services. Demand reflects a decision about which wants to satisfy.
