ECON 1B03 Chapter Notes - Chapter 4: Perfect Competition, Demand Curve, Inferior Good

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Bridget O' Shaughnessy

Document Summary

Chapter 4- the market forces of supply and demand. Market and competition: supply and demand are the forces that make market economies work, supply and demand refer to the behavior of people as they interact with on another. Market - a group of buyers and sellers of a particular good or service: the buyers as a group determine the demand of a product, the sellers determine the supply. Market demand- the sum of all individual demands for a particular good or service (ex. Shift in the demand curve: any change that causes the quantity that buyers wish to purchase at a given price shifts the demand curve to the right. Any change that lowers the quantity that buyers wish to purchases at a given price shifts the demand curve to the left: there are several variables that can shift the demand curve: o.