ECON 1050 Chapter Notes - Chapter 3: Equilibrium Point, Inferior Good, Normal Good
5 Dec 2017
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Econ chapter 3 notes and terms demand and supply. The place in which you find anything you want to buy is called a market: a market has two sides; buyers and sellers. There are many different stores which offer the same products and the buyer decides where they would like to purchase the product from. Competitive market a market that has many buyers and many sellers, so no single buyer or seller can influence the price. Producers offer items for sale if, and only if, the price is high enough to cover the opportunity cost. The price of an object is the number of dollars that must be given up in exchange for it. Relative price the ratio of one price to another, a relative price is an opportunity cost. Wants are the unlimited desires or wishes that people have for goods and services. Demand reflects a decision about which want to satisfy.
