ECON 201 Lecture Notes - Lecture 2: Inferior Good, Basic Income, Iphone X
Document Summary
Markets and competitions: a group of buyers and sellers of a particular good or service, buyers as a group. Determine the demand for the product: sellers as a group. Determine the supply of the product: competitive market. Each has a negligible impact on market price. Price and quantity are determined by buyers and sellers. As they interact: perfectly competitive market assumptions. Goods offered for sale are all exactly the same. No single buyer or seller has any influence over the market price. Sellers can sell all they want: monopoly. Amount of a good that buyers are willing and able to purchase: law of demand, demand. When the price of a good rises, the quantity demanded of the good falls. When the price falls, the quantity demanded rises. Relationship between the price of a good and quantity demanded. Quantity on the horizontal axis: individual demand. Individual"s demand for a product: market demand.
