ECON101 Chapter Notes - Chapter 5: Competitive Equilibrium, Avoidance Speech, Demand Curve

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Corey Van De Waal

Document Summary

Whoever is willing to pay the price will attain the. Associated with discrimination (white people get jobs over colored) When a market allocates a scarce resource, the people who get the resource are those who are willing to pay the market price. Most of the scarce resources that you supply get allocated by market price. You sell your labour services in a market, and you buy most of what you consume in markets. For most goods and services, the market turns out to do a good job. Command system allocates resources by the order (command) of. For example, if you have a job, most likely someone tells you what to someone in authority. do. Your labour time is allocated to specific tasks by command. A command system works well in organizations with clear lines of authority but badly in an entire economy. Majority rule allocates resources in the way the majority of voters.