EC120 Lecture Notes - Lecture 3: Demand Curve, Normal Good, Perfect Competition
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EC120 Full Course Notes
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Income: higher income will result in more university education if this is a normal good in the area. Opportunity cost: labour market for young adults, education market in other countries. Expectations: future income, job satisfaction, current consumption value. Technology: will it allow education to be delivered more cheaply; same amount of outputs for less inputs (bigger classes) Number of sellers: supply is strictly controlled by government. Groups of buyers and sellers of a good or service. Size of a market depends on the nature of the good. Competitive markets require: homogeneous products no brand differentiation, numerous buyers and sellers, perfect competition is rare. Monopoly - if there is only one seller. Oligopoly - if there are few sellers. Amount of a good buyers are willing and able to purchase at a given price: law of demand. As price rises, demand for a good falls: demand schedule. Table showing the relationship between price and quantity demanded: demand curve.
