ECN 104 Lecture Notes - Lecture 3: Economic Equilibrium, Ice Cream, Demand Curve
30 Oct 2015
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Competitive market: negligible impact on market price due to so many buyers and sellers: so many sellers selling offering similar products for the same price. So you can"t increase the price as a seller or else your customer will go somewhere else, and you wouldn"t want to reduce the price either. Monopoly: a single seller in the market that sets the price. The demand curve: the relationship between price and quantity demanded. Quantity demanded: amount of good buyers are willing and able to purchase: quantity demand negatively related to price, price goes up, quantity demand goes down, and vice versa, this is called law of demand. Demand schedule: table that shows relationship btwn price of good and quantity demand. Demand curve: a graph of the relationship btwn the price of a good and the quantity demanded. Market demand: the sum of all individuals demand for particular good/service.
