EC120 Lecture Notes - Lecture 3: Excess Supply, Durable Good, False Advertising
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EC120 Full Course Notes
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Document Summary
Incomes, population, preferences: prices of other products (interest rates) Is housing a competitive market: yes, limited supply and high demand. Group of buyers and sellers of a good/service. Size of market depends on the nature of the good. Key issue for government policy: canadian competition bureau: the canadian competition bureau, as an independent law enforcement agency, ensures that canadian businesses and consumers prosper in a competitive and innovative marketplace. Competitive markets require that there are many buyers, with free choice: homogenous products no brand differentiations, numerous buyers and sellers. If there is only one seller monopoly. Perfect competition is rare but a useful starting point. Quantity demanded: amount of good buyers are willing and able to purchase at a given price. Law of demand: as price rises, quantity demanded falls. Demand schedule: table showing the relationship between price and quantity demanded. Demand curve: graph of the demand schedule.
