EC120 Lecture Notes - Lecture 3: Demand Curve, Perfect Competition, Excess Supply
14 views1 pages
![EC120 Full Course Notes](https://new-docs-thumbs.oneclass.com/doc_thumbnails/list_view/2255876-class-notes-ca-wlu-ec-120-lecture16.jpg)
30
EC120 Full Course Notes
Verified Note
30 documents
Document Summary
Demand curve is relevant in any market. While a supply curve is only relevant in a competitive market. To be a competitive market we need a lot of choice: the more choices a customer has the lower companies must push their prices creating more competition. Perfect competition is rare, but easiest for the class to understand: starting here is easiest for students. Quantity demanded: how many are bought given a price. Quantity: how much of one product exists in the market: the difference is how many are want to be bought (quantity) vs how much are actually bought (quantity demanded) U(cid:374)less i(cid:374)fo is provided does(cid:374) t assu(cid:373)e that that a good is (cid:374)or(cid:373)al or i(cid:374)ferior: making this assumption can lead to you get the wrong answer. As price rises supply rises: law of supply. As prices rises quantity demanded falls: law of demand. Intersection of supply and demand is the equilibrium on the graph.
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers